Trying to decide whether it makes more sense to buy a home now or wait? There’s a lot to consider, from what’s happening in the market to your changing needs. But generally speaking, aiming to time the market isn’t a good strategy – there are too many factors at play for that to even be possible.
That’s why experts usually say time in the market is better than timing the market.
In other words, if you want to buy a home and you’re able to make the numbers work, doing it sooner rather than later is usually worth it. Bankrate explains why:
“No matter which way the real estate market is leaning, though, buying now means you can start building equity immediately.”
How Home Price Appreciation Impacts Your Wealth
Here’s some data to break this down so you can really see the benefit of buying now versus later – if you’re able to. Each quarter, Fannie Mae releases the Home Price Expectations Survey (HPES). It asks over one hundred economists, real estate experts, and investment and market strategists what they forecast for home prices over the next five years.
In the latest release, experts are projecting home prices will continue to rise through at least 2029 – just at a slower, more normal pace than they did over the past few years. Take a look at this graph:
What This Means for You
To give these numbers context, let’s use a typical home value to show how it could appreciate over the next few years using those HPES projections. This is what you could start to earn in equity if you buy a home in early 2025.
Locally, the Tampa market continues to show strong growth. According to recent data, Tampa's home prices are projected to appreciate by approximately 5.1% in 2025, which aligns closely with national trends. The Tampa area remains one of the hottest real estate markets in Florida, driven by demand, population growth, and limited inventory. This makes buying now an attractive option for those considering settling in the area.
Let’s say you go ahead and purchase a $400,000 home this January. Based on the expert forecasts from HPES and local Tampa data, you could gain more than $83,000 in household wealth over the next five years.
That’s not a small number. If you keep on renting, you’re losing out on this equity gain.
And while today’s market has its fair share of challenges, this is why buying is going to be worth it in the long run. If you want to buy a home, don’t give up. There are creative ways we can make your purchase possible. From looking at more affordable areas in Tampa to considering condos or townhomes, or even checking out down payment assistance programs, there are options to help you make it happen.
So sure, you could wait. But if you’re just waiting it out to perfectly time the market, this is what you’re missing out on. And that decision is up to you.
Bottom Line
If you’re torn between buying now or waiting, don’t forget that it’s time in the market, not timing the market that truly matters. Let’s connect if you want to talk about what you need to do to get the process started today.
