Waiting To Buy A Home Will Cost You More In The Long Run

I get concerned when I hear buyers say that they want to wait for interest rates to come back down before they buy a house and, there's a really good reason why - because appreciation is outstripping any savings that you might have had if you waited for interest rates to drop. So, I'm going to show you a quick chart that I did and this is Metro Atlanta average home prices over the past 10 years and you will see that every year there is a peak in the summer and every following year it is higher than the previous year and so with the exception of a crash in the real estate market, which is almost impossible at this point, we just simply don't have enough homes available for the market to crash, it would be very difficult to see that prices will drop sufficiently to wait on the sideline and miss the appreciation so that you can have the average monthly payment drop by waiting for the interest rates to go down. If you look a little bit closer here, you can see that the red trend line would have been what happened pre-COVID, the yellow is what the hyper-appreciation was doing on when interest rates were super low. But, now that they've doubled, we can see the last couple of years prices have stabilized, inventory is stabilized, and demand has stabilized. So under the current set of circumstances, it's probably much better to go ahead and buy now than it is to wait for interest rates to drop.

Ryan Ward, Broker
Cell: 404-630-3187

Ryan Ward is the Managing Broker and Owner of Premier Atlanta Real Estate and the School Director of Thrive Real Estate Academy.

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