The Real Cost of Waiting to Buy a Home

Many buyers are tempted to “wait for rates to drop” or for the “market to cool off” before purchasing a home. While that might sound financially savvy, waiting often comes with hidden costs.

1. Rising Home Prices

Knoxville has seen steady appreciation, with home prices rising around 5–6% annually in recent years. That $350,000 home today could easily cost $370,000 or more in 12 months.

2. Interest Rate Increases

Rates are difficult to predict. A 1% increase in mortgage rates can reduce your purchasing power by up to 10%. Use a mortgage calculator to see how small changes impact your monthly payment and lifetime loan cost.

For example, a $300,000 loan at 6.5% interest costs roughly $1,896/month. At 7.5%, it jumps to $2,098/month—a $200 difference, which adds up over time.

3. Lost Equity Growth

Every month you’re not a homeowner, you miss out on building equity. Over five years, this can equate to tens of thousands of dollars in missed wealth-building opportunities.

4. Inflation and Rent Hikes

While you wait, inflation continues to increase the cost of rent, maintenance, and materials. Renters in Knoxville saw a 7% increase in average rent from 2023 to 2024, making ownership more attractive.

⏳ Thinking of buying but unsure when? Let’s run the numbers together and see if waiting is really working in your favor—or costing you more in the long run.