by felipedebedout1 
With interest rates on the rise, many potential buyers are holding off, hoping for a future rate drop before jumping into the real estate market. But in the city, waiting could be a costly mistake. While it might seem tempting to sit tight until rates fall, the real issue is what happens when they do: home prices are likely to surge, especially for certain types of properties. Right now, Tenant-in-Common (TIC) units and condos are priced at levels we haven’t seen since 2015, offering a rare opportunity in one of the country’s most competitive markets.
Here’s why you might want to act now instead of waiting for a lower interest rate.
1. TICs and Condos Are a Deal Right Now
The city’s real estate market is known for its high prices, but currently, TICs and condos are priced at levels comparable to 2015. This pricing is a unique chance for buyers looking to enter the market at a more affordable point. Limited inventory, paired with steady demand for single-family homes, has shifted attention away from TICs and condos. But this won’t last long.
If you’re looking for a more affordable entry into homeownership in the city, now is the time to act. When rates eventually drop, demand will rise, and prices will follow suit, closing this rare window of opportunity.
2. Lower Interest Rates Will Fuel Price Surges
As soon as interest rates drop, more buyers will flood the market. Cheaper borrowing costs naturally lead to increased competition, especially in a city with limited housing stock. This increased demand will quickly push home prices higher, particularly in more accessible property types like condos and TICs.
By waiting for rates to come down, you may find yourself facing a much higher price for the same home. Even with a slightly better mortgage rate, the overall cost could end up significantly higher due to the surge in property values.
3. Home Prices Are Bound to Rise Again
Although current prices for condos and TICs may reflect a slight market adjustment, history shows that real estate in the city rarely stays low for long. The city’s economy, driven by sectors like tech and healthcare, consistently draws high-income earners who sustain demand for housing.
The current dip could be temporary. Once the market heats back up, these properties could see significant appreciation, leaving those who waited paying much more.
4. You Can Refinance, But Prices Won’t Go Back Down
While today’s interest rates might feel high, remember that mortgage rates can be refinanced. If rates eventually drop, you have the option to refinance your loan at a better rate. But what you can’t refinance is the price of your home.
The price you pay today is permanent, and as the market recovers, the cost of homes is likely to rise. By locking in a property now, you secure today’s lower price and can always adjust your mortgage later.
5. Build Equity Now in a Strong Market
One of the key benefits of buying now is the ability to start building equity immediately. Even with higher interest rates, the long-term trend in the city’s real estate market is upward. Waiting to buy could mean missing out on significant appreciation and wealth-building through homeownership.
In contrast, renting leaves you vulnerable to rising costs with no return on investment. Buying now means you’re locking in a stable monthly payment and starting to benefit from future home price growth.
6. Perfect Market Timing is a Gamble
It’s nearly impossible to perfectly time the real estate market. Waiting for the ideal combination of low interest rates and low prices is a gamble that rarely pays off. More often than not, when one improves, the other worsens. In the city, where housing demand consistently outweighs supply, waiting could leave you priced out of the neighborhoods you’re eyeing.
With TICs and condos currently at a price point not seen in years, this could be your best shot to secure a property in the city before prices rise again.
Conclusion: The Best Time to Buy in the City Might Be Now
If you’ve been considering buying a condo or TIC in the city, now is a rare opportunity to enter the market at a favorable price. Prices for these properties are at 2015 levels, but they won’t stay there for long. Once interest rates fall, competition will return, driving up prices and making it harder to find a deal.
Acting now means locking in today’s prices, starting to build equity, and setting yourself up for future financial gains. Waiting for interest rates to drop could cost you more in the long run. The truth is, you can always refinance your mortgage, but you can’t change the price you pay for your home.
