Every year, plenty of Maryland buyers decide to put homeownership on hold. Maybe they’re hoping mortgage rates come down, maybe they want to save a little more for a down payment, or maybe they’re just waiting until life feels a little more certain.
Those are all understandable reasons to wait.
What many people don’t realize, though, is that waiting has a cost. While you’re deciding, home prices continue to change, rent payments keep leaving your bank account, and the home you could have bought today may become more expensive tomorrow.
The question isn’t simply whether you should wait. It’s whether waiting is actually helping you get closer to your goal or simply delaying it.
Small Changes Can Add Up
It’s easy to hear that home prices are rising without thinking much about what that means in real dollars.
Imagine finding a home today for $400,000. If that same home sells for $410,000 a year from now, that’s another $10,000 you’ll need to finance before closing costs or interest even enter the picture. The house hasn’t changed—but the price has.
Even modest increases can make a meaningful difference over time. That’s why buyers who wait often find themselves paying more for the same home than they would have a year earlier.
Another challenge is inventory. Many Maryland communities still don’t have enough homes available to meet demand. When a well-priced home hits the market, it often doesn’t stay there for long. Waiting for the “perfect” opportunity can sometimes mean missing several great ones.
Renting Isn’t Pressing Pause
Choosing to rent while you wait doesn’t stop your housing expenses—it simply changes where your money goes.
The average renter in Maryland pays nearly $1,900 each month. Every rent payment helps build wealth for the property owner. A mortgage payment, on the other hand, helps you build equity in a home you own.
Ceit Leslie recently shared this perspective during our Real Estate Record video series. While renters are helping pay someone else’s mortgage, homeowners are investing in an asset that can grow in value over time.
As you make mortgage payments, you gradually own more of your home. If the home’s value increases, you benefit from that appreciation as well. Even if you eventually move, that equity can help fund your next purchase—or even become the foundation of a rental property.
That’s something renting simply can’t offer.
Trying to Time the Market Is Difficult
Many buyers tell us they’re waiting for rates to drop, prices to come down, or competition to slow. The challenge is that no one knows exactly when—or if—that will happen.
By the time market conditions seem ideal, many other buyers have reached the same conclusion. Increased competition can quickly erase some of the advantages people were waiting for in the first place.
Instead of trying to predict the perfect time, it’s often more helpful to focus on being financially ready when the right home comes along.
Getting pre-approved before you begin shopping is one of the smartest ways to do that. It gives you a clear understanding of your budget, identifies any issues that need attention, and allows you to make a strong offer when you find the right property.
You Probably Don’t Need 20% Down
One of the biggest misconceptions we hear is that buyers need a 20% down payment before they can even think about purchasing a home.
For many buyers, that’s simply not true.
Several loan programs allow qualified buyers to purchase with much less, including:
- Conventional loans with as little as 3% down
- Fannie Mae HomeReady and Freddie Mac Home Possible programs for eligible buyers
- FHA loans with down payments starting at 3.5%
While some of these loans require mortgage insurance for a period of time, many buyers find that the cost is still less expensive than spending another year renting or waiting while home prices continue to rise.
The important takeaway is that waiting until you’ve saved 20% may not be necessary.
Why So Many People Believe the 20% Myth
The idea of putting 20% down didn’t come out of nowhere. Years ago, it was the standard for avoiding mortgage insurance, and many buyers were encouraged to save that amount before purchasing.
Lending has changed considerably since then, but the advice has continued to be passed down from generation to generation. Today, many buyers are surprised to learn they may qualify much sooner than they expected.
When Waiting Actually Makes Sense
None of this means everyone should buy immediately.
Sometimes waiting is the smartest financial decision you can make.
If you’re improving your credit score, paying down debt, building your savings, or preparing for a career change, that extra time can put you in a much stronger position when you’re ready to purchase.
The difference is having a plan.
Waiting because you’re actively working toward a goal is very different from waiting and hoping the market changes in your favor. One moves you closer to homeownership. The other simply postpones the decision.
The Right Time Is Different for Everyone
There isn’t a universal “perfect” time to buy a home. The right time depends on your finances, your goals, and whether you’re personally ready to become a homeowner.
What we do know is that waiting isn’t free. Every month comes with its own costs, whether that’s another rent payment, a higher purchase price, or another missed opportunity to begin building equity.
If you’re wondering whether buying now or waiting a little longer makes the most sense for you, we’d love to help.
At Kelly + Co Realty, we’ll take the time to understand your goals, explain what’s happening in the neighborhoods you’re interested in, and review your financing options so you can start taking steps towards owning a home. Reach out today to get started!