Big Wins

I was watching flurries outside our windows in NH, scrolling through my phone, looking for photos of heating systems for a seasonal post on winterizing (more on that another time), and I found this photo from 2018.

Almost seven years (!) ago, my brilliant clients had sent me this closing gift: wrapped in the listing sheets of offers we had lost, with the sheet for the property they finally won wrapping the bottle inside. I shared it in IG stories, and I was so proud of them for sticking it out in a tough market, for being pragmatic about inspection items, and for winning this spot in the heart of Melrose that was perfect for them.

Now, I’m thinking of them again, both how funny and smart they are (that wrapping! still kills me), but also about how glad I am that they didn’t wait.

Can you imagine? None of us knew what was coming just 14 months later, what 2021 price appreciation would do to home values, but holy moly: if they had given up, if they had stayed on the sidelines, they would have missed out on so much.

Years of paying rent, skipped.

• Boston area rents for a 2-bed/1-bath apartment averaged around $2,372/month over the last seven years—that’s a whopping $199,248 in rent that they might conceivably have paid, had they stayed on the sidelines.

• Yes, they still have housing costs (mortgage payments, insurance, maintenance, etc.), but principal repayment builds your equity, not your landlord’s.

Years of equity, built. Years of wealth, generated.

• Part of the challenge in their purchase was a low down payment: when sellers have options, like buyers with 20% or more down or even all cash, they’re less likely to take a chance on an offer they perceive as more risky. Even so: seven years of payments, without forced appreciation from repairs and renovations, gets them to about $49,000 in additional equity from principal payments at this point.

• Combined with their initial down payment, that’s equity that they can tap for repairs, upgrades, emergency funds, or even another purchase. It’s wealth that can continue to work for them.

Mid-5% interest rates at purchase, plus a refi to 3.125%.

• No, we’re not back to 5% interest rates yet in 2025—but by buying what they could afford, when they could afford it, and not waiting for rates to shift lower, my buyers locked in a rate that was sustainable for them and equivalent to market rents at the time.

• Then, they were in a position to take advantage of a refinance opportunity when rates did drop further, to save them almost $600/month in principal and interest (P&I) payments.

Inflationary impact on cash savings, hitting down payments hardest.

• The cumulative inflation rate since 2018 according to CPI data was just over 23%, meaning that had my buyers waited—but kept their $30,000 down payment readily available as cash—it would now be worth just $24,346 in 2025 dollars. Higher interest rates impact buyer purchasing power very visibly, but waiting pinches purchasing power by eroding savings value, too.

• There are of course ways to mitigate this: if waiting really is right for you, work with your financial team to find places to save that will generate some return but keep your capital readily available.

Enormous home price appreciation during seven high inflation, low inventory years.

• From 2018-2025, Greater Boston single family homes saw a median cumulative appreciation of 64.4%—historically atypical, sure, but still a tremendous increase in property values in this region.

All told, between appreciation and principal repayment, my buyers’ equity has increased by over $375,000 in the last seven years. This is just for small single family in the suburbs—not a house hack, not an investment play, not a flip. This is the power of home ownership. I know it’s not as sexy as the stock market right now (I’m looking at you, Gen Z), but you need to live somewhere. Let’s find a way to make it work for you!

We don’t know what’s coming next, but the wait might not be worth it.