The REAL Cost of Waiting to Buy a Home
- Bailey Luthi
- Apr 21
- 4 min read
Waiting can be comfortable. It's easy to hit 'pause' and tell yourself, "I'll buy next year when things settle down." But, when it comes to real estate waiting can quietly drain your future wealth. While you're renting and watching the market from the sidelines, prices and interest rates are moving; usually not in your favor.
If you’ve been sitting on the fence about buying a home, it’s time to talk about the true cost of waiting - because it’s probably costing you more than you think.
The Market Today vs. 2023: A Quick Look Back
Let’s take a time machine back to early 2023... The average home price in southern New Hampshire or northern Massachusetts was noticeably lower than it is today. Home values in many towns have appreciated by 7–10% in just the past year. That $450,000 home you were eyeing in early 2023? It’s likely pushing $490,000 or more now, and we’re not even factoring in interest rate changes yet.
What does that mean for you? You’d now be paying more for the same house, plus more in interest over the life of your loan.
Rent: The “Invisible” Money Pit 💸
Renters, I see you. You’re paying $2,000 to $3,000+ a month for a roof over your head, and you're doing it like clockwork. But that money builds zero equity. It’s money you’ll never see again, and it doesn’t inch you any closer to ownership.
Let’s do some quick math:
$2,500/month in rent
x 12 months = $30,000/year
x 3 years = $90,000
That’s nearly $100K spent with no return. Meanwhile, a homeowner would’ve likely built tens of thousands in equity, between principal paydown and natural appreciation. It’s like running on a treadmill while your neighbor is taking the escalator up 🏃🏻♂️➡️🏃🏻♀️➡️
Equity Gains: The Wealth Builder You’re Missing
Equity is your secret weapon. It’s how regular folks build serious wealth (and generational wealth) over time. Every mortgage payment you make chips away at your loan and adds value to your name.
Let’s break it down with a real-world scenario:
You buy a $450,000 home in 2023
With modest appreciation (say 6–8% annually), your home could be worth $510,000+ in just two years
You’re also paying down your mortgage, approximately $7,000–$10,000 in that time
That’s $60K+ in gained equity just by living in your home
Now flip that. If you waited two years to buy, you’d not only miss that $60k, but now you’re shopping in a higher price bracket and possibly with higher interest rates.
Interest Rates: They're a Big Deal, But They’re Not the Whole Story
A lot of buyers right now are hesitant because of interest rates, and I get it. No one wants to lock in a higher monthly payment if they don’t have to. But here's the truth: waiting for the "perfect" rate can cost you more in the long run.
Rates right now are in the mid-to-high 6% range (and remember, I'm not a lender), depending on your financial picture. Is that higher than the record-breaking lows of 2021? Yes. But it's also a lot lower than what our parents were paying in the '80s or even early 2000s. Historically, this is normal territory.
More importantly: home prices are still climbing, and when you wait for rates to drop, you’re often walking into a hotter, more competitive market. Lower rates tend to bring out the buyers in droves, which can mean bidding wars, waived contingencies, and paying over asking again.
Instead of trying to time the market perfectly, focus on buying smart:
Find a home that fits your lifestyle and your budget
Lock in a mortgage you can comfortably afford today
Keep an eye on the future. If rates drop later, refinancing is always an option
Bottom line: It's less about chasing a magical rate and more about building equity, stability, and wealth on your own timeline. You can’t refinance the price you paid for a home—but you can refinance the loan.
The Snowball Effect of Delayed Buying
Let’s say you wait another year:
Home prices rise 5–8% again
Interest rates hold or climb
Your rent goes up (again)
Your purchasing power drops
Suddenly, that house you could afford this year is now out of reach, or you’re compromising on size, location, or features just to stay within budget.
This isn't fear talk; it’s simple math and market patterns. Time in the market matters more than trying to time the market.
So… What Should You Do?
Here’s the heart of it: If you're financially and emotionally ready to buy, now is always better than “someday.”
You don’t need to have 20% down. You don’t need perfect credit. You just need a solid game plan, the right team, and a little faith in your future self.
And that’s exactly where I come in.
I am here to educate you on your options, empower you to make smart decisions, and motivate you to take action that builds long-term security. I'm not about the pressure, rather I'm about helping you step into homeownership with confidence (and maybe a little celebratory charcuterie board after closing) 😉
Waiting can feel safe, but when it comes to real estate, it often comes with a very real price tag. Lost equity. Higher prices. More rent. Less buying power.
So, the question is: Can you afford to wait another year?
Or better yet: Can you see yourself living in a home that’s truly yours this year?
Let’s make it happen. Reach out today and let’s chat about where you are, where you want to go, and how we can get you into a home you love—without waiting on the sidelines any longer.
Ready to run the numbers? Curious about your local market? Just want to daydream about your future kitchen island? I’m here for all of it. Let’s talk.
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