When is the Right Time to Buy?

By Zach Burnham

February 2025

Buying a home is a big decision. Many people wonder when is the right time to buy. The truth is, if you need to move, the right time to buy is now. Waiting for the “perfect” time can cause missed opportunities. Here are three reasons why now is always the right time to buy a home.

1. Home Prices Keep Rising

Over time, home prices have always gone up. There is no 10 year cycle that real estate values are down. Meaning that whenever you buy, in 10 years your house is almost certain to be worth more. Buying now means locking in today’s price before homes become more expensive.

• Inventory Remains Low – It’s very unlikely prices will come down very much until inventory goes up. And housing is not the type of product that more inventory can flood the market in a short amount of time. So, with little chance of the market being flooded with more houses in the near future, it’s most likely that prices will at least remain the same, if not increase.
• Demand Remains Strong – More people are looking to buy homes every year. High demand pushes prices higher. When more buyers enter the market, competition increases, making it harder to find an affordable home. Add the inventory problem noted above to this and you get the perfect recipe for rising prices.
• Renting Is More Expensive Long-Term – Rent prices continue to climb. Monthly rent payments build no equity. Homeownership allows buyers to invest in their future instead of paying a landlord.

2. Interest Rates Are Still Favorable

Mortgage rates change often. While they may fluctuate, they remain reasonable compared to past decades. But it’s very possible they could still increase in the near future. The market is extremely unpredictable (at the time of this writing) and it’s very unclear whether rates will be able to be lowered in 2025 as anticipated. Buying a home now allows buyers to secure a mortgage before rates increase further.

• Lower Rates Mean Lower Payments – Even a small rate increase can add hundreds to a monthly payment. Locking in a lower rate now keeps payments more affordable.
• Refinancing Is Always an Option – If rates drop later, refinancing can lower costs. Waiting for the “lowest” rate is risky. A great deal today can be even better tomorrow with refinancing.
• Buying Power Decreases as Rates Rise – When rates go up, loan affordability goes down. Higher rates reduce the amount buyers can borrow, limiting home choices.

3. Building Wealth Starts Now

Buying a home is one of the best ways to build wealth. Of course, home values increase over time, helping homeowners grow their investment. But the other aspect often overlooked is that every mortgage payment you make pays down your balance. This is super beneficial.

• Equity Grows Over Time – Each mortgage payment reduces the loan balance. As home values rise, equity builds. This wealth can be used for future financial needs, most notably helping to afford a move-up to your next home.
• Owning Creates Stability – Renting provides no long-term security. You could receive notice and be forced to move in 90 days. Homeownership allows for predictable payments, plus financial and general life stability.
• Tax Benefits Can Help – Homeowners may qualify for tax deductions. Mortgage interest and property tax deductions can reduce taxable income, saving money each year.

Conclusion:

The “Best” Time to Buy is When It Makes Sense for Your Life

Trying to time the market perfectly is nearly impossible. The best thing to do is buy when you need to buy, just make sure you do it in the smartest way possible at that time. This is going to be best achieved by working with a trusted agent. They can help you navigate the market to find affordable homes, lenders with the best terms, and many other ways to keep your costs low. All this can help you buy in a smart, affordable way while others are twiddling their thumbs on the sideline waiting for the perfect time.

At the end of the day your fastest way to wealth is with homeownership. Don’t miss out on that wealth by waiting too long. The market always offers opportunities. The right time to buy is always when you need to.

 

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