Why Now Is Still a Smart Time to Buy a Home

Donna Brown
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March 23, 2025

Home values continue to rise nationally. With mortgage rates still elevated and home prices climbing, you may be waiting for prices to drop or trying to time the market for the perfect rate. But here’s the truth: waiting for the right moment could cost you in the long run.

Home Prices Are Still Rising – Just at a More Normal Pace

The idea that prices will drop significantly is unlikely in most markets. According to the Home Price Expectations Survey from Fannie Mae, analysts project home prices will continue increasing through at least 2029.

While we’re no longer seeing the steep spikes of previous years, experts forecast a steady and sustainable 3-4% annual increase nationwide. This is a much more typical rate of appreciation—a positive sign for hopeful buyers.

What This Means for You

While it may be tempting to wait for home prices or mortgage rates to decline before buying, here’s what you need to consider:

Home prices are expected to keep rising. The longer you wait, the higher the price tag on your future home.
Waiting for the perfect mortgage rate or a price drop may backfire. Even if rates drop slightly, rising home values could still make waiting more expensive overall.
Buying now means building equity sooner. As home values increase, your investment gains value over time.

Let’s break it down with real numbers. If you purchase a $400,000 home today, based on these forecasts, its value is expected to increase by over $83,000 within the next five years. That’s a significant return on investment.

Why Aren’t Prices Dropping? It’s All About Supply and Demand

While there are more homes on the market now compared to last year, inventory still isn’t high enough to meet buyer demand. This continues to put upward pressure on prices.

While every market is different, most areas will continue to see moderate price growth. Some locations may level off slightly, but a major national price drop is highly unlikely.

Bottom Line: Time in the Market Beats Timing the Market

If you’re debating whether to buy now or wait, remember: real estate rewards those who get in the market, not those who try to time it perfectly.

Yes, today’s housing market has its challenges, but there are ways to make homeownership work for you—exploring different neighborhoods, considering condos or townhomes, looking into alternative financing, or using down payment assistance programs.

The key is to make a move when it makes sense for you, rather than waiting for an ideal scenario that may never arrive.

Want to take a look at what’s happening with prices in our local market? Whether you’re ready to buy now or just exploring your options, having a plan in place can set you up for success.