Buy Now or Wait in Summit, NJ? The Hidden Cost of Waiting for Lower Rates

# Should You Buy Now in Newton—or Wait for Rates to Come Down?

If you're watching mortgage rates hover where they are and thinking "I'll just wait this out," you're not alone.

But here's what the data is actually showing in markets like ours: waiting for lower rates often means paying a higher price—without any real improvement to your monthly payment.

The Rate Myth: "Lower Rates = A Better Deal"

It's tempting to believe the perfect moment is just ahead. The Fed cuts rates, payments drop, competition eases.

That logic breaks down in tight-inventory, high-demand suburbs.

"Most people think waiting means you'll lock in a lower rate and a calmer Summit market. But Summit isn't waiting with you. If 2026 rates hover near 6%–6.5%, you may just pay a higher price for the same monthly payment."

Here's what that means for Newton: when rates drop, homes don't automatically become "cheaper." What happens instead is that more buyers show up at once. And that pushes prices up.

What Actually Drives Timing: Inventory, Not Rates

The biggest force behind today's stalemate isn't just borrowing costs. It's what economists call a "low churn" environment.

Job openings have fallen to a 14-month low. Layoffs remain steady. That combination keeps people staying put—and when people stay put, fewer homes hit the market.

Even when buyers are ready, inventory stays tight.

The last 12 months show that tightness clearly, especially in days on market and the sale price to list price ratio.

Look at the "Ratio: SP/LP" column. Even in quieter months, homes are consistently selling above list price. That's not a market in distress. It's constrained supply.

What this means: waiting doesn't increase your choices. In a low-churn market, you're often just waiting for the same limited pool of homes—at later, often higher, prices.

Why "Waiting It Out" Can Backfire When Rates Finally Dip

There's a common assumption: "When rates fall, there will be more inventory."

The risk is that demand jumps faster than supply. When rates soften, sidelined buyers rush back in.

That's the pressure cooker effect. The demand hasn't disappeared. It's been delayed.

The Data Signal: Strong Eastern Markets Aren't Set Up for a Crash

While some Western markets have seen bigger corrections, Realtor.com's 2026 forecast points to the Eastern U.S. as a leader for value and stability.

That matters because it suggests markets like ours aren't sitting on a cliff edge.

As late 2025 is projected forward, the trend remains upward:

By June 2025, the average sale price is projected to hit nearly $1.94M with a sale-to-list ratio of 113.48%.

What this means: waiting for "relief" can mean you re-enter the market when homes cost more and bidding pressure is higher.

"But Affordability Is Terrible—Isn't Buying Now Risky?"

Affordability is strained. The data says the typical household now needs seven years to save for a down payment—double the pre-pandemic requirement.

That's real.

But it also points to something important: the barrier to entry is rising, not falling.

Two practical implications come straight from the numbers:

Here's a market snapshot as of August 2025:

The data tells the story: - Inventory is up 72% versus last year, yet prices are still climbing. - Sale price to list ratio remains at 107.20%. - Year-over-year median price change: up 17.6%.

Even with "more inventory," competition can still be intense—and prices can still rise. If you're waiting for a deal, the data says that's not a reliable plan.

Quality-of-Life Markets Hold Their Value for Specific Reasons

Some communities continue to command demand because they combine day-to-day livability with long-term fundamentals.

One metric consistently tied to durable demand is school districts.

And beyond the stats, community amenities and neighborhood character matter because they support demand over time.

If you're buying in a community where schools and lifestyle features anchor demand, waiting for a rate drop may not create bargaining power. It may simply bring you more competition.

So… Buy Now or Wait?

Based on the data presented here, the most defensible strategy is this:

Buy the asset when it fits your life—and treat the rate as adjustable later.

The data supports it:

Put another way: the cost of waiting can outpace the cost of borrowing.

If rates fall later, you can refinance. If you wait and prices rise—or bidding wars return—you can't rewind your purchase price.

A High-Value Next Step (Summit-Specific)

If you want a clear "buy now vs. wait" answer for your exact situation, take the guesswork out.

Reach out and ask for a Newton-specific payment-and-price scenario comparison—based on your target neighborhoods, down payment, and realistic competition level.

I'll help you pressure-test two paths side-by-side: buying now at today's rate versus waiting for a lower rate with a higher likely price.