There’s no denying that it’s tough out there for buyers. The inventory shortage has created a market that’s more competitive than normal. As a potential buyer, you might be thinking “I should probably wait until next year to make a move.” But if you want to get the best deal on a home, you should probably rethink that idea. According to the most recent US Home Price Insights from CoreLogic, home prices are expected to rise 5.7% year-over-year—meaning a house you might be considering buying today will be 5.7% more expensive if you wait until this time next year to make a purchase. What does that look like? Let’s say the house you’re considering making an offer on today is priced at $275,000. With a 5.7% increase, at this time next year that same house is projected to be listed at $290,675—$15,675 more than you’d pay today. Not only are home prices projected to go up, but so are mortgage rates; Freddie Mac predicts that by the end of 2018, mortgage rates will increase an entire percentage point year-over-year—which will only make buying a home more expensive.
If you’re waiting to buy a home in the hopes it will be affordable next year, do yourself (and your wallet) a favor—stop waiting and make a purchase.