If you own a home, you’ve probably noticed a significant increase in your net worth over the past year. Home prices have been climbing, leading to faster equity building than you might realize. 

The rapid increase in housing prices and interest rates are creating significant barriers for potential new homeowners, particularly younger Americans and first-time buyers. As home prices continue to soar, the dream of owning a home becomes increasingly out of reach for many. This price surge means that the required down payments are higher, making it difficult for individuals and families to save enough to qualify for a mortgage. The gap between what potential buyers can afford and the actual cost of homes is widening, forcing many to remain in rental properties or stay with family longer than planned.

Moreover, the high cost of homes is not the only financial challenge prospective buyers face. Rising prices also lead to higher property taxes, increased insurance costs, and more expensive maintenance and repair bills. These additional financial burdens further deter new buyers from entering the market, as the overall cost of homeownership becomes prohibitively expensive. This situation perpetuates a cycle where many people are unable to build equity and accumulate wealth through homeownership, widening the economic gap between current homeowners and those aspiring to buy their first home.

In today’s highly inflationary economy and with high borrowing cost, many potential buyers are questioning whether now the right time is to buy. While the right timing depends on personal factors, consider this: if you can buy at today’s rates and prices, it might be better to focus on time in the market rather than trying to time the market.

Trying to time the market isn’t necessarily a good strategy because conditions can change unpredictably. For instance, projections of falling mortgage rates have been delayed by various economic factors. Those who waited for lower rates found themselves dealing with high monthly payments, as affordability didn’t improve.

While mortgage rates and monthly payments are important considerations, don’t overlook home prices. Prices are expected to continue climbing, which, once you own a home, will benefit you through equity growth.

If you’re ready and able to buy now, consider whether waiting is truly worth it. Remember, time in the market is more valuable than trying to time the market. This decision should be based on your personal needs, financial means, and the time available to find the right home.

If you’re debating whether to buy now or wait, remember that time in the market is key. In a highly inflationary economy, starting to build equity now can set you up for significant future gains.