Why Waiting to Sell and Buy in Southwest Michigan Could Cost You More

Imagine you’re standing at the edge of Lake Michigan, looking out over the water, debating whether to dive in now or wait for the tempature to drop 1 degree. That’s a bit like the decision many Southwest Michigan homeowners face today: should you sell your current home and buy a new one now, or hold off and hope for better conditions?

It’s tempting to wait, especially if you’re eyeing those interest rates and hoping they’ll drop. But here’s the catch: waiting for lower rates often means facing higher home prices—and that can end up costing you a lot more in the long run.

Home Prices Are Rising—And They Aren’t Waiting for You

Over the past few years, Southwest Michigan has seen steady appreciation in home values. Even with some market fluctuations, demand for homes in our region remains high. When interest rates eventually dip (as many buyers are hoping), more people will jump back into the market. That surge in demand tends to push prices up quickly—think of it like a crowded beach when the sun finally comes out after a week of rain.

If you wait for rates to fall, you’ll likely face stiffer competition and higher prices. That means even if you snag a slightly lower rate, you could pay tens of thousands more for your next home.

The Math: Why Waiting Can Backfire

Let’s break it down with a simple example. Say your dream home in St. Joseph is $400,000 today, but you decide to wait a year, hoping rates will drop by half a percent. If prices rise just 5% in that time (a conservative estimate for our area), that same home could cost you $420,000 next year. Even with a lower rate, your monthly payment could be similar—or even higher—because you’re borrowing more.

Plus, your current home’s value may rise, but so will the price of the home you want. The gap between what you sell for and what you buy for can actually grow if you wait.

Real Stories from Southwest Michigan

Many local sellers who waited in 2022 and 2023 saw this play out firsthand. They held off, hoping to "time the market," only to discover that rising prices outpaced the benefits of lower rates. Instead of saving money, they ended up paying more for less.

What’s the Smart Move?

• Work with a local expert who understands the nuances of the Southwest Michigan market.
• Focus on your total budget, not just interest rates.
• Remember: you can always refinance later if rates drop, but you can’t go back in time to buy at a lower price.

In real estate, waiting for the "perfect moment" can mean missing your best opportunity. If you’re thinking about making a move in Southwest Michigan, now might be the right time to dive in—before the next wave of buyers drives prices even higher.