Depending on your financial situation, it could be a great time to buy right now because buyer competition is low and home prices are starting to adjust down. But for some, it may not be the best time to buy. Ultimately you know what’s best for your situation. However if you do have the financial resources to buy but your staying on the sidelines of purchasing a home because rates are too high, how would you feel when they started coming down it then became nearly impossible to compete against all the buyers who also decided to come back into the market? Here’s my thoughts on whether it is or is not a good time to buy right now.

IT’S NOT A GOOD TIME TO BUY IF…

1)     You don’t feel secure in your job and are worried about getting laid off.

2)     You are anxious about the volatility in the markets.

3)     Higher interest rates and inflation are keeping you up at night.

However, IT IS A GOOD TIME TO BUY IF…

1)     You currently have the financial means for a down payment. Hint: it doesn’t need to be 20%!

2)     You feel secure in your job and you’re not losing sleep every time the stock market dips or inflation rises.

3)     You’ve compared the cost of home buying with the cost of continuing to rent. With rents steadily increasing, homeownership is typically a better choice than renting.

4)     You’re a first-time home buyer and you don’t have to sell a home.

5)     You’re a first-time home buyer who has the option of getting an FHA loan which has a lower down payment than a conventional loan.

6)     You are a cash buyer and don’t need to take out a loan.

7)     You want to submit an offer with protection in the form of an inspection contingency, low appraisal contingency and financing contingency.

8)     You don’t want to compete with several other buyers who often bid up the price of home.

9)     You have spoken to a lender to learn about the loan programs designed to help offset higher rates (i.e a Rate Buy Down) and your real estate agent has discussed with you the option of asking the Seller to cover closing costs or contributing to a rate buy down.

10)  You understand that the market will normalize, rates are expected to come down next year and refinancing is always an option in the future.

This is not financial advice. I encourage you to meet with a mortgage professional and real estate broker to discuss your personal situation. The decision to buy a home typically comes down to your personal goals and needs more than mortgage rates and home price fluctuations.