It’s easy to think putting off a big financial decision like a home purchase is a smart move—and in some cases, it might be.

Contrary to what most people might believe, I do not think everyone should buy a home right now. For a lot of people, it just doesn’t make sense. If you need to work on your credit, save for a down payment, or build up an emergency fund, then it might a good idea to hold off on your homebuying plans.

However, if all your ducks are in a row and you’re just waiting to “time the market” and get the best deal on a home and mortgage, I think it’s important to understand how delaying your homebuying plans could affect you:

  1. The home you want will be more expensive

Prices might seem relatively high now, but it’s important to remember that homes historically retain and increase their value over time. While prices do fluctuate in certain markets, because of the supply and demand imbalance, there will not be any significant and sustained home price declines.

  1. Your rent will be higher

According to, average rent prices have increased 8.85% per year since 1980. While the cost of buying a home remains high, more people are going to remain in the rental market which will keep rent prices elevated. Rent prices are also affected by inflation, whereas as a mortgage payment is not.

  1. You will miss out on home equity

Homeownership helps you build wealth by providing you with equity in your home—the portion of your home that you actually own outright. As you make mortgage payments and your loan balance decreases, your equity will increase. If you wait until the right time to buy and continue renting, you are paying money every month that you will never see again.

  1. You could lose the ability to negotiate

When competition for homes is low, you have more opportunity to negotiate with sellers on price reductions and credits for closing costs or interest rate buydowns. Once that “perfect” time to buy a home comes around, there are going to be a lot more offers on the home you want. That means the seller dictates the terms, not you.

  1. Interest rates could increase even more

Is it impossible to predict exactly what will happen with interest rates. While we can get a good idea based upon inflation numbers and what the Federal Reserve is going to do with their monetary policy, there are many factors at play that affect interest rates like inflation, economic growth, and monetary policy.

Whether you’re a first home buyer or a seasoned investor, timing the housing market is extremely difficult. There will always be pros and cons when buying a home in ANY market.

I know buying a home in this market can be scary, but if you are ready to buy now, I’m confident that you will look back a year from now and be grateful that you did!

If you have any questions about what a housing payment would look like for you today, or if you would like to start the pre-approval process, let me know and we can schedule a quick phone call.

Ready to get started?  We’re here to help!

Tim Erickson
P: (652) 451-2273

Mark Henderson
P: (651) 398-3477