There’s no denying that it’s tough out there for buyers. The inventory shortage has created a market that’s more competitive than normal. As a potential buyer, you might be thinking, “I should probably wait until next year to make a move.”
But if you want to get the best deal on a home, you should probably rethink that idea.
According to the most recent US Home Price Insights from CoreLogic, home prices are expected to rise 5.7% year-over-year. This means a house you might be considering buying today will be 5.7% more expensive if you wait until this time next year to make a purchase.
What does that look like? Let’s say the house you’re considering making an offer on today is priced at $275,000. With a 5.7% increase, at this time next year, that same house is projected to be listed at $290,675—$15,675 more than you’d pay today.
Not only are home prices projected to go up, but so are mortgage rates. Freddie Mac predicts that by the end of 2018, mortgage rates will increase an entire percentage point year-over-year, which will only make buying a home more expensive.
If you’re waiting to buy a home in the hopes it will be affordable next year, do yourself (and your wallet) a favor—stop waiting and make a purchase.