Time in the Market Beats Timing the Market

Trying to decide whether it makes more sense to buy a home now or wait? Theres a lot to consider, from whats happening in the market to your changing needs. But generally speaking, aiming to time the market isnt a good strategy there are too many factors at play for that to even be possible.

Thats 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 youre 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. 

Heres some data to break this down so you can really see the benefit of buying now versus later if youre able to. Each quarter, Fannie Mae releases the Home Price Expectations Survey. 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 (see the graph below):

But what does that really mean for you? To give these numbers context, the graph below uses a typical home value to show how it could appreciate over the next few years using those HPES projections (see graph below). This is what you could start to earn in equity if you buy a home in early 2025. 

In this example, lets say you go ahead and buy a $400,000 home this January. Based on the expert forecasts from the HPES, you could gain more than $83,000 in household wealth over the next five years. Thats not a small number. If you keep on renting, youre losing out on this equity gain.

And while todays 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, dont give up. There are creative ways we can make your purchase possible. From looking at more affordable areas, 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 youre just waiting it out to perfectly time the market, this is what youre missing out on. And that decision is up to you.

Bottom Line

If youre torn between buying now or waiting, dont forget that its time in the market, not timing the market that truly matters. Connect with an agent if you want to talk about what you need to do to get the process started today.

Venessa James - Broker Associate    

ABR, ALHS, CHMS, MCNE, LUXE, SFR, SRS  

Platinum Experience Group - KW Professionals 

(281) 889-8292 platinumexperiencegroup.com

Integrity, Experience, Results