It’s a big question on many people’s minds these days: Should I buy a home now or wait? Whether you’re a first-time homebuyer or looking to move into a new property, the decision comes with a lot of factors to weigh. The good news is, once you purchase a home, you immediately begin to build equity—and that can add up faster than you might expect, even with more modest increases in home prices.
So, let’s take a look at what’s happening with home prices and what that means for your future wealth.
Home Prices Are Expected to Keep Rising
Each quarter, Fannie Mae releases the Home Price Expectations Survey (HPES), which gathers insights from over one hundred economists, real estate experts, and market strategists. They predict home prices will continue to rise nationally through at least 2028, albeit at a more moderate pace.
While prices will vary from one region to another, the key takeaway is that home prices are expected to increase every single year for the foreseeable future. For potential buyers in Brookings, South Dakota, this means that the longer you wait to buy, the higher home prices may go, and the more you could end up paying.
And while rising home prices might sound concerning at first, once you own a home, this increase becomes a huge benefit for you—building your equity and boosting your household wealth.
The Power of Building Equity Over Time
Let’s break this down with an example. Imagine buying a home today for $450,000. Based on expert forecasts from the HPES, over the next five years, you could gain over $90,000 in equity just by owning the home and benefiting from the rising home prices.
That’s no small sum! Think of it as a way to grow your wealth without having to do anything extra beyond owning your home. This kind of return is one of the key reasons people build so much financial security through homeownership.
And with mortgage rates starting to fall again, now could be the right time to make a move. Lower rates not only reduce your monthly mortgage payment but also increase your buying power—allowing you to get more house for your money.
Why Working with a Local Pro Makes All the Difference
Understanding how home prices and equity growth affect your specific situation is crucial. That’s where a trusted real estate agent comes in. Your agent will not only explain what’s happening with home prices locally here in Brookings but also help you make sense of how it fits into your long-term financial goals.
As The Mortgage Reports highlights:
“Given the intricacies of the current market, it’s more important than ever to stay informed and up to date about housing market conditions. Whether you’re looking to buy or sell in the remaining months of 2024, having a professional guide you through the process can make all the difference.”
A local agent can offer insights into current market trends in Brookings, let you know if prices are trending similarly to the national predictions, and advise you on the best strategy to get the most value from your home purchase.
The Equity You Could Be Leaving on the Table
Delaying your decision to buy might cost you more than you realize. When home prices go up and you’re not in the market, you’re missing out on the chance to build equity—equity that could be working to grow your wealth.
That’s why working with a real estate expert is so important. They’ll help you figure out if now is the right time to buy based on your financial situation, the housing market, and your future goals. If you’re thinking about waiting, they can also walk you through what could happen with prices and rates in the near future, so you can make a well-informed decision.
Bottom Line
Deciding whether to buy a home now or wait is a personal decision that depends on a variety of factors. However, the longer you wait, the more you could be giving up in potential equity growth. A local real estate professional won’t pressure you, but they can offer valuable insights into what’s at stake and help you think through all the options.
If you’re considering a home purchase in Brookings, South Dakota, or the surrounding area, let’s talk. I’m here to help you weigh the pros and cons, explore the current market conditions, and determine if now is the right time for you to make a move. Contact Shane Andersen at the Brookings Home Team today!
Posted by Shane Andersen on
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