The Cost of Waiting

The Cost of Waiting

Dollars and Sense Approach Points to Present as Good Time to Buy a Home

With the housing crisis of the past several years, some analysts see the downward trend of home ownership continuing, at least temporarily, as millenials struggle to pay off their student loans and wait for good job offers following the recent dry job spell.

But is home ownership still desirable? And, if so, does it make sense to buy now if possible, rather than waiting a year or more?

The answers on both counts are a definite “Yes.”

Why Buy?

Whether individuals and families buy a home as a financial investment or for the freedom and independence it offers, there are solid dollars and cents reasons for doing so. Tax legislation favors homeowners over renters, and building equity has a number of advantages over the long term.

A Matter of Finances

Current affordability is a key factor in the decision to buy now. But prices are trending upward. The appreciation levels of the past are not expected to return, but homes next year will almost certainly be more expensive due to:

Demand Exceeding Supply:

2.2 million jobs created in the last year
÷1.01M total permits for new homes
= 2.2 jobs / per new housing unit created
1.2 is considered normal

Pent-up demand for 25-34 yr. olds

house values one year later



Interest Rates

  • The Fed is tapering
  • The US has to rollover an enormous amount of debt
  • Reasonable estimate is an increase in mortgage rates in 1 year is 1/2%

monthly payment 1 year later





If Interest rates rise a 1/2 percent next year the difference between buying today and buying next year, assuming equal mortgage amounts, could be substantial. A $285,000 mortgage would cost $85 more each month or $1,020 more over a year with a 1/2 point increase.

This equates to $17,000 in purchasing power, meaning your buyer now qualifies for $17,000 less than they did 1 year ago.


Total Savings

Common sense and simple math calculations show that buying now is a good decision for those who can qualify and have sufficient down payment and income. By acting today, the buyer would gain that equity, qualify for more, and save those dollars.
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SOURCES:,, BureauAppreciationInterest

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