As a mortgage professional helping families in Colorado, Texas, and Florida achieve homeownership, I often speak with clients who are waiting for the "perfect" moment—when rates are lower, prices are better, or inventory is higher. It's understandable. The market has felt challenging in recent years. But one truth stands out from my years in this business and from the stories I share on my podcast, Mosaic: The Stories of Real Estate: waiting to buy almost always comes with a hidden price tag.
1. Home Prices Tend to Rise Over Time—Even in Slower Markets
Real estate has historically appreciated, and forecasts for 2026 point to continued, though modest, growth. Experts from sources like the National Association of Realtors (NAR), Fannie Mae, and Zillow project national home price increases ranging from about 1-4% in 2026, with many landing in the 2-3% range after slower growth in recent periods.
In states like Texas and Florida, where population growth and economic opportunity continue to drive demand, appreciation often outpaces the national average in desirable areas. Even a modest 3% annual increase on a $400,000 home adds $12,000 to the price in just one year. Wait two or three years? That compounds quickly.
The opportunity cost here is straightforward: the home you can afford today might require a larger down payment or higher monthly payment tomorrow.
2. Rent Payments Are Money That Builds No Equity
While you're waiting, you're likely renting—and rent dollars go straight to your landlord, not toward your future wealth.
Rent increases have often outpaced general inflation over the past decade, with many markets seeing average annual rises of 4-6% (and higher in high-demand areas). In contrast, once you own a big portion of your mortgage payment goes toward principal, building equity from day one. Plus, fixed-rate mortgages lock in your principal and interest for the long term, providing predictability that renting rarely offers.
Consider this real-world example: If your current rent is $2,200/month and rises 4% annually, in five years you're paying around $2,670/month—with zero equity to show for it. Over the same period, owning could mean thousands in principal paydown and appreciation working in your favor.
3. The Power of Time in Building Equity and Legacy
Every month you own, you chip away at your loan balance while (in most markets) your home's value grows. This double benefit—amortization plus appreciation—creates wealth that renters miss out on.
Delaying by even a year or two shortens the time you have to build that equity. For families aiming to create a legacy—whether passing a paid-off home to children or tapping equity for future needs—starting sooner maximizes those compounding advantages.
I've seen this firsthand with clients who waited for rates to drop further, only to face higher prices that offset any savings. Others who moved forward built substantial equity as values rose, giving them options down the road.
4. Rates May Not Drop as Much as Hoped—And Waiting Carries Risk
Mortgage rates have stabilized in the mid-6% range recently, with some forecasts suggesting a gradual easing into the low-6% territory or slightly below by late 2026. While lower rates would help affordability, the difference might be smaller than many expect.
More importantly, if prices rise alongside any rate relief, your monthly payment could end up similar—or higher—than if you'd bought earlier. The "cost of waiting" calculators many use show that delaying a purchase by 12-18 months can add tens of thousands of dollars in extra costs when factoring in price appreciation and continued rent payments.
The Bottom Line: Focus on Your Readiness, Not Market Timing
I'm not suggesting rushing into a purchase if you're not financially prepared—that's never good advice. But if you're in a stable position, have solid credit, a down payment saved, and the income to support homeownership, waiting purely for market conditions often backfires.
At Efficient Lending, Inc. (NMLS: 1876539), my approach is simple and rooted in my core values: understanding your unique needs, explaining the nuances transparently, and helping you secure a low-cost mortgage that fits your life. I love jumping on the phone to talk through scenarios and build real relationships based on trust.
If you're in Colorado, Texas, or Florida and wondering whether now is your time, let's chat. Homeownership is about more than a house—it's about building security, wealth, and legacy for your family.
Visit https://efficientlending.net to get started, or follow me on X at @mike_lending for more insights. And if you enjoy real stories from homeowners who've built generational wealth through smart real estate decisions, check out the introductory episode of my podcast Mosaic: The Stories of Real Estate.
Mike Nelsn, CEO - Efficient Lending, Inc
NMLS: 1876539 | NMLS: 1314188
