Main Content

Focus on Time in the Market, Not Timing the Market: Insights for Los Angeles and Beverly Hills, CA

Focus on Time in the Market, Not Timing the Market: Insights for Los Angeles and Beverly Hills, CA

By Christophe Choo Posted Jun 26, 2024 Latest Updates, Market Activity, Real Estate Advice for Buyers & Sellers, Real Estate Articles, What I'm Reading

Focus on Time in the Market, Not Timing the Market: Insights for Los Angeles and Beverly Hills, CA | Christophe Choo at Coldwell Banker Global Luxury is Your Local Real Estate Expert

Should you buy a home now or should you wait? This question is on the minds of many prospective homebuyers today, especially in high-value markets like Los Angeles and Beverly Hills. While the right timing depends on various personal factors, there’s an important consideration you may not have thought about: focusing on time in the market rather than trying to time the market.

The Downside of Trying to Time the Market

Attempting to time the market is a risky strategy because market conditions can change unexpectedly. For much of this year, projections indicated that mortgage rates would decrease. Although experts still anticipate this trend, shifts in various economic factors have delayed the timeline. According to U.S. News:

“Those who put off buying a home during the past few years as they were holding out for lower mortgage rates have been left out of the market . . . mortgage rates have stayed higher for longer than previously expected, keeping monthly housing payments elevated. In other words, affordability didn't improve for those who chose to wait.”

This highlights why waiting for the perfect moment might not pay off if you’re ready and able to buy now.

The Proof Is in the Pudding: How Homeowners Benefit from Rising Home Prices

Delaying your home purchase means missing out on potential equity gains. Each quarter, Fannie Mae releases the Home Price Expectations Survey, which gathers forecasts from over one hundred economists, real estate experts, and market strategists about home prices for the next five years. The latest survey indicates that home prices will continue to rise through at least 2028.

For context, let’s consider a scenario where you purchase a $400,000 home at the beginning of this year. According to expert forecasts from the HPES, you could gain more than $83,000 in household wealth over the next five years. This significant potential for equity growth underscores why time in the market is crucial.

The Advice You Need to Hear If You’re Ready and Able to Buy Now

You may be focused on current mortgage rates and how they affect your monthly payments, but it’s essential to also consider home prices. Prices in markets like Los Angeles and Beverly Hills are expected to continue rising, albeit at a more moderate pace. While this may not seem favorable now, owning a home and benefiting from its appreciation will be advantageous in the long run.

Instead of trying to time the market, consider the equity you could gain by buying now. If you’re ready and able, it’s worth asking yourself: is waiting really the best option?

As U.S. News Real Estate sums up:

“There's never a one-size-fits-all answer to whether now is the right time to buy a home. . . . There's also no way to predict precisely what the market will do in the near future . . . Perfectly timing the market shouldn't be the goal. This decision should be determined by your personal needs, financial means and the time you have to find the right home.”

Bottom Line

If you’re debating whether to buy now or wait, remember: it’s about time in the market, not timing the market. To set yourself up for significant equity gains and take advantage of current market conditions in Los Angeles and Beverly Hills, let’s connect and make it happen.

Call Christophe Choo at (310) 777-6342 to tour your future home "HERE" or click "HERE" to estimate your home value

Skip to content