Is Now Really a Good Time to Buy, or Should I Wait for Prices or Rates to Drop?

The Question Every Buyer Asks

It’s the question on almost every buyer’s mind: “Should I buy now, or wait for prices and interest rates to come down?”

It’s a fair question — buying a home is one of the biggest financial decisions most people ever make. But the truth is, trying to “time” the housing market is almost impossible, even for professionals. Let’s break down why.

1. Prices and Rates Rarely Move Together

Many buyers assume that if prices drop, interest rates will too. In reality, the two usually move opposite of each other.

When home prices flatten or fall, it’s often because rates have gone up — meaning your monthly payment may stay nearly the same (or even increase). For example, a 1% rise in interest rate can change your buying power by roughly 10%. That can make a $600,000 home suddenly feel like a $540,000 one in affordability.

2. Real Estate Is Local — Always

Even if national headlines sound gloomy, your local market tells a different story.

In Snohomish and King Counties, we continue to see tight inventory, healthy buyer demand, and multiple-offer situations in certain price ranges. Well-priced homes are selling quickly, while over-priced homes sit. So instead of asking “Is it a good time to buy?” — ask “Is it a good time to buy for me, in this area?”

3. You Build Equity While You Wait

When you rent, 100% of your payment goes to your landlord’s equity — not yours.

When you own, a portion of every payment builds your financial foundation. Even modest appreciation (3–5% per year) and loan principal paydown can add tens of thousands of dollars in net worth over a few years.

For example:

• Rent: $2,500/month for 3 years = $90,000 spent, $0 equity.

• Buy: $2,500/month mortgage = $90,000 spent, but ~$25,000 in principal paid down + potential appreciation.

Even in a steady market, ownership almost always wins long-term.

4. Waiting Carries Its Own Risk

Waiting for “the perfect time” often means missing the right home.

Inventory in our area remains limited, and most economists project that interest rates may gradually decrease — which will bring even more buyers back into the market. When that happens, competition (and prices) rise again. Buying now may give you more leverage and less competition.

5. Focus on the Payment, Not the Rate

The real question isn’t “What’s the rate?” — it’s “What’s the monthly payment I’m comfortable with?”

If that number fits your budget and lifestyle, you’re in a good position. Remember, you can always refinance if rates drop later, but you can’t go back in time to lock in today’s home prices.

6. The “Five-Year Rule”

If you plan to stay in a home for at least five years, buying almost always makes financial sense.

You gain stability, potential appreciation, and tax benefits — while protecting yourself from rent hikes and inflation. Real estate has proven to be one of the most reliable long-term wealth builders for generations.

Final Thoughts

The best time to buy a home is when:

• You’re financially prepared,

• You’ve found a home that fits your needs,

• And you plan to stay long enough to benefit from appreciation.

The “perfect” market doesn’t exist — but your perfect opportunity might.

If you’d like to explore whether buying now makes sense for your specific situation, I’m happy to run numbers with you, show local data, and help you make a confident, informed decision.

John Merrell

📍 Keller Williams Realty Everett

📞 (425) 480-6864

📧 jmerrell@kw.com

WA Broker License #25025188