You’ve probably heard this classic real estate advice before:
“The best time to buy a home was yesterday. The second-best time is today.”
And there’s a reason people say that. Home prices across the country are still climbing. With mortgage rates remaining high and home prices inching up, it’s easy to get stuck waiting—hoping prices will drop or interest rates will magically fall to where they were years ago.
But here’s the thing: holding out for a perfect moment might cost you more in the long run.
Home Prices Are Rising—But At a Steady Pace
If you’re hoping prices will take a big dip, the experts don’t see that happening. According to Fannie Mae’s Home Price Expectations Survey, analysts predict home values will continue increasing through at least 2029.
The wild price jumps from the past few years have cooled off, but prices are still expected to rise at a healthy, sustainable pace of about 3-4% per year across the country. For buyers, this more predictable growth is actually a positive sign.
See graph below.
Why This Matters If You’re Thinking of Buying
It’s tempting to sit back and wait for mortgage rates to come down or for prices to drop before you make your move. But here’s what you need to keep in mind:
✅ Home prices are likely to be higher tomorrow than they are today. If you hold off, you’ll probably end up paying more down the road.
✅ Waiting for the "perfect" rate can backfire. Even if rates dip, rising prices could cancel out those savings—and you may find yourself priced out of the homes you want.
✅ Buying now means you start building equity right away. With prices steadily climbing, the sooner you buy, the sooner your investment starts growing.
Let’s look at some real numbers. If you buy a home for $400,000 today, forecasts show it could be worth over $83,000 more in just five years. That’s equity in your pocket instead of money left on the sidelines.
See graph below.
Why Prices Aren’t Dropping: Supply and Demand Still Rule
While there are more homes on the market now compared to last year—or even last month—there still aren’t enough homes to meet buyer demand. And when demand is high and supply is tight, prices stay strong.
Redfin puts it this way:
“Prices will rise at a pace similar to that of the second half of 2024 because we don’t expect there to be enough new inventory to meet demand.”
Even though every local market has its own story, most areas are still seeing steady price increases. Some markets may level off, but a dramatic drop? That’s just not in the forecast.
The Bottom Line: Time In the Market Wins Every Time
Trying to perfectly time the real estate market is like trying to catch lightning in a bottle. It rarely works. But buying and holding? That’s where real estate builds wealth.
Yes, today’s housing market has challenges. But there are also creative solutions—exploring different towns, looking at condos or townhomes, working with lenders who offer flexible financing, or using down payment assistance programs.
The key is to make a move when it’s right for you, not when you think the stars will align.
