The Cost of Waiting
Waiting for the real estate market to drop before buying a home feels safe…until you do the math.
Quick rewind:
2019: “I’ll wait for the crash.”
2020: “Pandemic. Any day now.”
2021: “Prices are insane.”
2022: “Rates are too high.”
2023: “Still overpriced.”
2024: “Election year.”
2025: “Uncertainty.”
2026: Still renting. Still waiting.
Meanwhile, the “panic buyers” of 2019? On average, their homes are worth approximately $600K – $800k more, and they have seven years of equity. Even better, they haven’t paid rent in seven years, and they’ve been able to do fun things like getting a dog, painting their child’s room or planting trees. They also don’t have to worry about what to do if their landlord decides to sell the house or increase the rent.
Let’s look at the “crash” so many have been waiting for. Even a 20% dip still puts prices well above 2019 values — and now you’ve paid rent the whole time. Sometimes the market does drop, and when prices dip in the Bay Area, buyers rush in, inventory tightens and bidding wars become the norm. The “deal” quickly disappears. It’s also a time when you may need to compromise on the size, location or condition of the home you’re buying…and if you’re not an all-cash buyer, you might not be able to compete.
For many of us, the words of our parents, grandparents or a mentor ring in our ears, “Buy low, sell high!” Throughout most of recent history, real estate values have gone up dramatically every decade, with the exception of a few years here and there when we’ve seen a drop. Time spent invested in the market is more important than timing the market, especially if the house you’re buying is the home that you’ll be living in. Every year that you wait to buy costs you potential appreciation (equity) and money spent on rent, that you never get back.
Every home buying experience is unique! Please feel free to reach out to me at 925-964-5010 or via email at Lisa.Hopkins@Compass.com. Even if you’re not planning a move, I’m happy to help by providing you with relevant data, enabling you to make a well informed decision. It’s never too early to start planning for success.
