The Cost of Waiting to Buy

The Cost of Waiting: What Buyers Should Know in 2025
Why delaying your home purchase could cost more than you think

If you're sitting on the sidelines waiting for prices to drop or interest rates to fall, you're not alone. Many buyers in the DC metro area are in a “wait and see” mode. But here’s the truth: in real estate, time isn’t neutral—it’s often expensive.

Whether you're a first-time buyer or looking to move up, here are a few key reasons why waiting may cost you more than you realize in 2025:

1. Home Prices Are Still Rising—Just More Gradually

While the market isn't appreciating at the breakneck pace we saw a couple of years ago, home values in DC, Northern Virginia, and close-in Maryland are still steadily climbing. Limited inventory continues to drive competition, especially for well-located, move-in-ready homes.

Even a 2–3% annual increase on a $700,000 home means it could cost $14,000–21,000 more a year from now.

2. Interest Rates: A Moving Target

There’s a lot of chatter about rates coming down—but even small fluctuations have a big impact on your monthly payment.

Let’s say you’re eyeing a $700,000 home with 20% down:

• At 6.75%, your monthly principal + interest = ~$3,632

• If rates fall to 6.25%, that drops to ~$3,453

• But if they rise to 7.25%, you’re looking at ~$3,819

That’s a $366/month swing—or nearly $132,000 over the life of the loan.

And if you’re waiting for a rate drop, so are thousands of others—meaning more competition when that time comes.

3. Buying Power Can Shrink Quickly

As prices and rates rise, what you can afford today may be out of reach tomorrow. Buyers often find that their dream home becomes their stretch home… or slips out of budget altogether.

Waiting doesn’t always give you more options—it can narrow them.

4. Renting? You're Paying Someone Else’s Mortgage

Renting may seem like the flexible choice, but it’s money you’ll never get back—and in DC, rents are creeping up again. Every month you rent is equity you could be building elsewhere.

5. There’s No Perfect Time—Only the Right Time for You

Trying to “time the market” is like trying to catch a falling leaf in the wind. The better approach? Make sure your finances are strong, get pre-approved, and be ready to move when the right home comes along. Owning gives you stability, equity growth, and the ability to plan long-term.

Bottom Line

Delaying a home purchase can seem like a cautious move—but in a market like ours, it often means paying more later for the same (or lesser) home.

If you're thinking about buying this year but unsure about timing, let’s talk. I’ll walk you through your options and help you make a smart move—on your timeline, but with real numbers to guide the decision.