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Think Twice Before Waiting for Lower Home Prices

April 17, 2023 1 min read Brenda Bianchi

Many Tampa Bay buyers are waiting for prices to drop before they buy. After 43+ years watching that strategy play out across multiple cycles, our team can tell you the math has rarely favored the waiters.

What forecasters expect

Major forecast houses (Fannie Mae, Freddie Mac, NAR, MBA) generally expect annual home price appreciation of 3–5% over the next several years. None forecasts meaningful price declines.

The cost of waiting

On a $400,000 Tampa Bay home:

  • Wait 1 year: home likely costs $12,000–$20,000 more
  • Wait 2 years: $24,000–$40,000 more
  • Plus 1–2 years of additional rent ($24,000–$48,000+)
  • Plus missed mortgage paydown and tax benefits

What about rates dropping?

If rates fall meaningfully, prices typically respond by rising (more buyers can afford more). The price savings you hope for usually do not materialize.

What works

Buy when the home fits your life and the monthly payment fits your budget. Refinance later if rates drop. Time in market beats timing the market.

The bottom line

Waiting has been an expensive strategy in Tampa Bay. Our team is happy to walk through real numbers for your situation.

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