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Focus on Time in the Market, Not Timing the Market in Kansas City

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Focus on Time in the Market, Not Timing the Market in Kansas City

Should you buy a home now or should you wait? That’s a big question on many people’s minds today in Kansas City. While the right timing for you depends on many personal factors, here’s something you may not have considered: if you’re able to buy at today’s rates and prices, it may be better to focus on time in the market, rather than timing the market.

The Downside of Trying To Time the Market

Trying to time the market isn’t a good strategy because things can change quickly. Here’s an example: for much of this year, projections indicated that mortgage rates would come down. While experts still agree that lower rates are ahead, shifts in various market and economic factors have delayed the timing of when that’ll happen. Here’s how that’s impacted homebuyers who’ve been sitting on the sidelines. As U.S. News explains:

“Those who put off buying a home during the past few years as they were holding out for lower mortgage rates have been left out of the market . . . mortgage rates have stayed higher for longer than previously expected, keeping monthly housing payments elevated. In other words, affordability didn’t improve for those who chose to wait.”

This illustrates why timing the market may not pay off if you’re ready and able to buy now.

The Proof Is in the Pudding: How Homeowners Benefit from Rising Home Prices

Delaying your plans also means missing out on the equity you’d gain if you went ahead with your purchase today. The potential equity gains that are at stake may surprise you.

Each quarter, Fannie Mae releases the Home Price Expectations Survey. It asks over one hundred economists, real estate experts, and investment and market strategists what they forecast for home prices over the next five years. In the latest release, experts project that home prices will continue to rise through at least 2028.

To give these numbers context, let’s look at a breakdown of what you stand to gain once you buy. Let’s say you went ahead and bought a $400,000 home at the beginning of this year. Based on expert forecasts, you could gain more than $83,000 in household wealth over the next five years. That’s not a small number.

This data helps paint the picture of why time in the market really matters.

The Advice You Need To Hear If You’re Ready and Able To Buy Now

Right now, you may be focused on what’s happening with mortgage rates and how those impact your monthly payment, but don’t forget to factor in home prices. Prices are expected to continue climbing, albeit at a more moderate pace. While a moderate rise in prices may not be fun for you now, once you own a home, that growth will be a huge perk. That’s the time in the market piece.

Sure, you could try timing the market, but the equity you’ll be missing out on in the meantime is something to seriously consider. If you’re ready and able to buy now, you have to decide: is it really worth waiting?

Rather than focusing on timing the market, it’s better to have time in the market.

As U.S. News Real Estate sums up:

“There’s never a one-size-fits-all answer to whether now is the right time to buy a home. . . . There’s also no way to predict precisely what the market will do in the near future . . . Perfectly timing the market shouldn’t be the goal. This decision should be determined by your personal needs, financial means, and the time you have to find the right home.”

Bottom Line

If you’re debating whether to buy now or wait in Kansas City, remember it’s time in the market, not timing the market. If you want to get the ball rolling and set yourself up for those big equity gains, let’s connect to make it happen.

Author:

Chris Dowell, Dowell Family Team

ReeceNichols

About the Author:

With over 30 years of experience, Chris Dowell is a seasoned professional in the Kansas City real estate scene. As a dedicated member of the Dowell Family Team at ReeceNichols Johnson County West, Chris has been assisting Kansas Citians in buying, selling, and investing in real estate. Whether you’re looking to make a purchase, sell your property, or explore investment opportunities, Chris is here to guide you through the process.

Contact Chris:

Website: www.DowellFamilyTeam.comContact Information: https://solo.to/dowellfamilyteam

Author: Dowell Family Team

The Dowell Family Team: Your Trusted Real Estate Experts in Johnson County
At The Dowell Family Team with ReeceNichols Real Estate, we are dedicated to serving the residential real estate needs of Kansas Citians with a focus on Olathe, Overland Park, Gardner, Spring Hill, Leawood, Lenexa, Shawnee, and the surrounding Johnson County cities.
With over 35 years of combined experience in the local real estate market, our team blends professionalism with a personalized approach. We take the time to understand your unique needs and goals, whether you're buying, selling, or investing in property.

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