Last Updated on April 25, 2025
In the dynamic world of real estate, timing is everything.
As trusted advisors to homebuyers, we understand the significance of making informed decisions in a market that’s as unpredictable as it is promising. Today, we’re here to shed light on a crucial aspect often overlooked: the cost of waiting to buy a home.
The 2025 real estate market presents opportunities for those prepared to act. Potential buyers often wait for market conditions to improve. But the old adage runs true: time in the market is better than timing the market.
As buyers wait, home values consistently trend upward, with an average annual appreciation of 5%. Waiting to buy means paying more for the same property, even if interest rates fall slightly.
Consider the following example, using a $500,000 home and assuming a 5% appreciation:
| Timing | Home Price Estimate | Example Interest Rate | Mortgage Payment | Total Annual Savings Based on Monthly Payment | Loss of Wealth | Net Negative Wealth |
| Current Price | $500,000 | 7% | $2,661 | |||
| Wait 1 Year | $525,000 | 6.50% | $2,655 | $72 | $25,000 | $24,928 |
| Wait 2 Years | $551,000 | 6% | $2,643 | $216 | $51,000 | $50,784 |
| Wait 2 Years | $551,000 | 5% | $2,366 | $3,540 | $51,000 | $47,460 |
Waiting even one year adds $25,000 to the home’s value, which translates into a higher purchase price of the home and a larger loan amount.
What about interest rates? If rates drop from 7% to 6.5%, a buyer may see a reduction in monthly payments. But they will likely be offset by a higher home price. Over the life of a 30-year loan, the wealth lost from paying more for the home could exceed the savings achieved with a slightly lower interest rate.
While buying a house right now might feel overwhelming, the cost of waiting can be a burden on finances down the road. If now’s the time to buy, connect with a Realtor or mortgage professional today.
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Allen Tate is the Carolinas’ largest real estate company with more than 70 offices and 1,800 Realtors in the Charlotte, Triad, Triangle, High Country, Upstate SC, Highlands/Cashiers and Asheville/Mountain regions. Allen Tate is a partner of Howard Hanna Real Estate, the largest privately held real estate broker in the U.S., with 480 real estate, mortgage, insurance, title, and escrow service offices and 15,000 sales associates and staff across 13 states. For more information, visit www.allentate.com and www.howardhanna.com.
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