🤔 Should You Wait to Buy a Home?
It’s one of the biggest questions buyers ask today: “Should I wait for house prices to come down before I buy?” While it’s understandable to want a “better deal,” the data shows that prices are not likely to drop significantly anytime soon. In fact, waiting could actually cost you more in the long run. Let’s explore four key reasons why.
1️⃣ Limited Housing Supply Keeps Prices Strong
There’s currently a shortage of 3 to 5 million homes across the U.S., according to Freddie Mac and the National Association of Realtors. Builders have been under-producing for more than a decade, and even with new construction ramping up, supply can’t catch up overnight.
Because demand still outpaces supply, prices tend to rise. Just like any other market, when there’s more demand than inventory, values go up—not down. This housing shortage is expected to last for years, keeping home prices stable or gradually increasing.
2️⃣ Lower Inflation Doesn’t Mean Lower Prices
Even if inflation cools, that doesn’t mean home prices will drop. It simply means prices may rise at a slower pace. Think about groceries: even when inflation slowed, food prices didn’t fall—they just climbed more slowly.
The same applies to housing. Home prices and rents typically rise over time, even when inflation eases. Unless there’s a major spike in unemployment or oversupply, prices are unlikely to fall significantly in most areas.
3️⃣ High Mortgage Rates Are the Only Thing Keeping Prices in Check
Higher mortgage rates have cooled buyer activity and slowed price growth. But as rates start to decline—something we’re already beginning to see—many buyers waiting on the sidelines are likely to jump back in.
That sudden surge in demand could drive prices up again quickly. If you wait for lower rates, you might find yourself in bidding wars and paying more overall, even if your interest rate is slightly better.
4️⃣ Inflation Could Actually Rise Again
Persistent government spending, global supply issues, and new tariffs could cause inflation to rise again. When inflation goes up, so do hard asset prices—including real estate.
We saw this in the 1970s and 1980s, when home values climbed steadily during years of high inflation. Real estate tends to be one of the most reliable inflation hedges, protecting your purchasing power over time.
💡 Bottom Line
Waiting for home prices to drop may sound smart—but history and economics suggest otherwise. With limited supply, steady demand, and inflationary pressure, prices are more likely to climb than fall.
If you’re financially ready, buying sooner rather than later could help you build equity and take advantage of today’s market before the next wave of buyers re-enters.
🏠 Want to discuss your strategy? Let’s connect to review your mortgage options and create a plan that fits your goals.