Should You Buy Now or Wait? The Surprising Truth About Building Equity in Today's Market

Hey everyone! Debby here, and I’m excited to share some timely insights from my recent videos. With the current real estate market shifting in unique ways, I wanted to answer one of the top questions I’m hearing from buyers: “Should I buy now, or wait?”

Let’s dive into what’s happening and how you can make an informed choice.

What's Happening in the Market Right Now?

The Federal Reserve recently lowered the fund rate by a quarter point, but this change hasn't yet made its way to mortgage rates. As I prepare for my open house this weekend, I’m seeing a lot of buyers “on the fence.” People are watching and waiting, wondering how factors like the economy and recent elections will affect interest rates and home prices. Typically, this time of year is slower in real estate, but with current market conditions, this season might just surprise us!

Why It Might Be a Good Time to Buy

Here’s why I think this might be an excellent time to consider buying. Prices right now are generally lower, but interest rates are higher compared to what we might expect down the road. When rates eventually drop, we’re likely to see more buyers jumping into the market, which could drive up home prices.

I want you to make the most informed decision, so I’m sharing a tool I absolutely love: a simulation app called PalmAgent ONE. It provides a side-by-side comparison of buying now versus buying later, so you can clearly see the potential impact on your monthly payments, equity, and overall financial picture.

Exploring the Buy Now/Buy Later Simulation

In this video, I walk you through a live simulation using PalmAgent ONE with a home priced at $850,000.

Here's a quick summary of what we found:

BUY NOW

- Home Price: $850,000
- Interest Rate: 6.75%
- Monthly Payment: $6,248
- Equity in 2 Years (with 3.5% Appreciation): $162,415
- Monthly Payment After Refinancing (at 5.75%): $5,503

BUY IN 2 YEARS

 - Home Price: $910,541 (due to projected appreciation)
- Interest Rate: 5.75% (assumed)
- Monthly Payment: $6,161
- Equity in 2 Years: $0

The numbers speak for themselves! If you buy now, you’re locking in a lower purchase price, and even with a higher initial interest rate, you gain more equity over time. By refinancing in two years (if rates drop as anticipated), your monthly payments would also decrease leaving you with even more equity.

The figures provided are estimates and are for illustrative purposes only. Actual terms, rates, and monthly payments may vary. Be sure to check with your lender or financial advisor for accurate, personalized information based on your unique financial situation.

WATCH the video to see the calculations and projections at work!

The Power of Planning and Projection

I’m a big believer in future forecasting, and this app lets us do just that! It gives you a clear view of different financial scenarios based on real-time data and projections, allowing you to make a choice that best supports your personal and financial goals.

So, what’s next? If you’re seriously considering buying now, reach out! I’d love to run a customized simulation with you, tailored to your specific situation and goals. Drop a comment below or message me directly to get started.

Let’s figure out the right time to buy for *you*— call me at 619-820-9999 to get started!

Debby Eubank, Realtor, SRES
Nest & Invest Host / Real Estate Maven
Jason Mitchell Group
DRE# 01332306
619-820-9999