You’ve probably heard it before:
“I’m going to wait. Prices will drop.”
“Rates are too high — I’ll buy next year.”
“We’re just going to sit tight until the market cools down.”
Sound familiar? If so, you’re not alone — but you might be misinformed.
Today, we’re tackling one of the most common misconceptions in real estate: that waiting to buy a home will always save you money.
Spoiler alert: it won’t. And in many cases, it could actually cost you more — sometimes a lot more.
Let’s unpack why.
The Myth: “Waiting = Lower Prices”
Reality Check #1: Home Prices Rarely Drop Long-Term
Yes, home prices fluctuate. But real estate isn’t crypto — it doesn’t crash and burn overnight (and thankfully, you can’t accidentally lose your house by forgetting your password).
Over the last 50 years, U.S. home values have risen steadily over time. Even during downturns, like the 2008 housing crisis, prices eventually bounced back — and then kept climbing.
In fact, according to the Federal Housing Finance Agency (FHFA), home prices in the U.S. have grown by an average of 4.4% per year over the past three decades.
So while you might be hoping for a big price drop, history suggests you’ll be waiting a long time… with rising rent bills in the meantime.
The Myth: “Interest Rates Will Definitely Go Down Soon”
Reality Check #2: Predicting Rates is Like Predicting the Weather
Yes, rates could drop next year. They could also spike again. Ask anyone who confidently said rates would “never go above 5% again” back in 2021 how that prediction turned out.
The truth is: no one — not even the Fed — knows exactly when or how much rates will change.
What we do know? If you find the right house now at a payment you can afford, you can always refinance later if rates drop. But if you wait and home prices jump while rates stay steady (or rise)? That “good deal” you were waiting for may vanish.
The Myth: “If I Wait, I’ll Have More Buying Power”
Reality Check #3: Inflation Eats Into That Plan
Let’s talk math for a second.
Imagine you’re shopping for a $400,000 home today, but you decide to wait a year hoping prices drop. Instead, the average home price increases by just 5% (a modest gain based on current trends).
That same house now costs $420,000. If mortgage rates also go up by even half a percentage point, your monthly payment could increase by $250 or more.
So by waiting, you didn’t get more buying power — you just got a more expensive mortgage.
Why Buying Now Might Actually Save You Money
Here’s what smart buyers are doing in this market:
- Negotiating incentives like closing cost assistance or rate buydowns.
- Using creative financing tools, like adjustable-rate mortgages or lender credits.
- Locking in equity early by buying before prices increase further.
Plus, many sellers today are more flexible than during the pandemic frenzy — meaning less competition and more room to negotiate.
And yes, this is exactly where a good agent or lender partner (hi 👋) can help you navigate the nuances.
Real-World Example: The Cost of Waiting
Let’s compare two hypothetical buyers:
Buyer A buys today:
- $400,000 purchase price
- 6.75% interest rate
- Monthly payment (principal & interest): ~$2,594
Buyer B waits a year:
- Home price rises to $420,000
- Rate rises to 7.25%
- Monthly payment: ~$2,861
That’s $267 more per month — or over $96,000 more over the life of a 30-year mortgage.
Ouch.
The Bottom Line? Time the Life, Not the Market
Here’s the honest truth: the “perfect time” to buy is less about the market, and more about your life.
Are you ready financially? Emotionally? Do you have a stable job, decent savings, and a desire to put down roots?
If the answer is yes, don’t let fear-based myths or bad TikTok takes stop you. Partner with a solid real estate team (ahem… like the one sharing this article) and make a plan based on your goals, not guesswork.
Actionable Takeaways
✅ Talk to a loan officer and real estate agent now — even if you’re just thinking about buying. They can run real numbers, not rumors.
✅ Explore rate buydown or seller concessions that make buying more affordable today.
✅ Compare the cost of waiting using a mortgage calculator or by asking your agent to help model the numbers.
✅ Focus on what you can control: your budget, your credit score, and your timeline.
FAQs
Q: But what if the market crashes?
A: If you’re buying to live in the home (not flip it), long-term appreciation matters more than short-term swings. Historically, home values always rebound.
Q: Should I just rent and save more?
A: Possibly! But remember — rent is 100% interest. And rents are rising in many markets, too.
Q: Is now a good time to refinance later?
A: Yes. Many buyers are using a “buy now, refinance later” strategy. It’s like putting the house on layaway.
