Here’s why you shouldn’t wait until next year to purchase a house.

I've spoken with several potential homebuyers and sellers who are holding off on their search for a new home because they want to wait for the market to cool down. Are you putting off your home search because you think homes will be more affordable next year? Doing so may cost you money in the long run. Today, I'll go over why it may be better to buy now than wait.

”It's still more affordable to purchase a home now than it will be in the future.”

I spend a lot of time researching housing trends, listening to trusted experts in the real estate industry, and paying attention to driving economic factors regarding market factors. There’s no evidence that home prices will drastically drop like we saw many years ago. While we will see home appreciation slow down, that doesn't mean you will save money by waiting. Both appreciation and mortgage rates will likely rise over the next few months and into next year. Even though home prices have climbed dramatically this year, it's still more affordable to purchase a home now than it will be in the future.

See 1:38 in the video for a graph with examples. The home appreciation rate is very high at 12.1% nationwide, but mortgage interest rates are very low. Today, they’re around 2.8% to 3%, depending on your loan type. This means your monthly payment on a $250,000 home would be $1,027 if you purchase today.

If you wait until next year or later, mortgage rates are expected to increase over 3%, and home appreciation is expected to return to normal rates around 5% to 6%. This means your monthly payment will jump to $1,243 for the same house. Based on projections for higher-priced homes ($500,000 to $750,000), we're looking at a potential increase of $400 to $1,000 per month if you wait until next year or beyond to purchase a home.

If you're ready and able to qualify for a home purchase now, you should jump in while the market is favorable. My team and I are here to be your trusted real estate experts. We know the market, we've been through recessions and changes before, and we can provide a strategy that works best for you, so contact us today.