A Good Reason Not to Wait to Buy a Home

“Should I buy a home now, or wait?” It’s a common question, especially during times when interest rates are high. On one hand, you want to get started living in your own home, and may not want to pass up the chance to buy your dream home. On the other hand, you might think it would be wise to wait for interest rates to come back down.

While there are some great non-financial arguments as to why you should not wait to buy a home, let’s take a look at a financial one.

Homes are Climbing Fast in Value

A simple financial reality is that home values are continuing to climb rapidly. You have no doubt noticed this already. But you may not have considered the financial implications fully.

Home prices are going up a half a percentage every month on average. Think about that for a moment. Here is what that means:

• The longer you wait to buy a home, the higher the cost of the home is going to be.
• The longer you wait, the more potential profits on your home investment you are missing out on. Once you buy the home, its rising value is advantageous to you.

From that perspective, it makes sense to snap up a home quickly. Doing so will allow you to profit off of its rise in value, rather than that rise in value making homeownership more expensive.

But What About Interest Rates?

You might be thinking, “That makes a lot of sense, but what about interest rates? They are still high.”

We probably are not going to see a dramatic plunge in rates again anytime soon like what we saw during the pandemic. So, it does not make sense to wait around for that.

But here is something else to consider. In the future, if interest rates go down again, you can refinance at a lower interest rate. You do not have to be stuck permanently with the interest rate you get today.

But you cannot “refinance” a home price. If you wait to buy and home prices rise, you are going to be stuck paying that higher price. And we have every reason to believe that not only will home prices keep rising now, but over the long term, they likely will as well.

Get Answers to Your Questions About Buying a Home

As you can see, it may make the most financial sense to buy a home now. Plus, if you have your eye on your dream property, it will not stay on the market for long, so you will need to move fast to close.

If you think this may be the right time to buy a home, but you still have questions, we can discuss your scenario with you in detail during your consultation. We can help you purchase a home or refinance in Missouri or 40 other states. To get started, please give us a call at (816) 631-9687.