“When is the right time to buy a home?”

It’s one of the most common questions I hear especially here in the Poconos. Many buyers are tempted to wait for interest rates to hit a “magic number.” But let’s take a step back and look at why waiting can actually cost you more in the long run.

Home Prices Don’t Stand Still

Historically, homes appreciate at about 4% per year. When you delay your purchase, you’re missing out on that appreciation and appreciation is real money. Even if rates dip slightly in the future, higher home prices can offset (or exceed) any savings from a lower rate.

Lower Rates Bring More Competition

When rates do drop, buyers flood the market. More buyers means more competition, bidding wars, fewer concessions, and higher prices. Waiting doesn’t always make buying easier, it often makes it harder.

Buy When the Payment Fits Your Budget

The smartest time to buy is when the payment works for your budget today, based on current market conditions. If rates improve later, you always have the option to refinance and lower your payment. You can’t refinance the purchase price but you can refinance the rate.

Owning a Home Builds Wealth

I truly believe homeownership is one of the strongest ways to build long-term wealth. As your home appreciates and your loan balance goes down, your equity grows that’s wealth you own. Renting, on the other hand, builds someone else’s wealth, not yours.

A New Year, A Fresh Start

As the new year begins, take time to review your budget, your goals, and what you want in a home. Make sure to meet with a trusted loan officer or myself to review your budget and what you can afford. But waiting for whatever reason can cost you. If owning a home is your dream, I would love to help you overcome whatever is holding you back. I am here to help.