Buy a house now? Or wait?

Should I buy a house now? Or should I wait? You've probably wondered which action is the right one to take when circumstances give you the option to move forward or wait, whether you're buying your first home or selling your home to relocate, upsize or downsize.

The best answer to the question can be found by starting with your finances and then looking at all the elements that influence your decision on when to buy a home, including interest rates that affect the cost of borrowing and the availability of homes on the market in the location where you want to live.

The question is 'should'. 'should I buy a house now or should I wait' will be a concern for many.

The November 2022 Fannie Mae Home Purchase Polling Index (HPSI), which reflects consumer opinion of the real estate market, found that higher mortgage rates continue to limit affordability, with 62 percent of those surveyed saying they expect mortgage interest rates to continue to rise over the next year. "Both buyers and sellers have a much lower sentiment compared to last year, which we think is not surprising given that mortgage interest rates have more than doubled and home prices remain high," said Doug Duncan, senior vice president and chief economist at Fannie Mae.

The right time to buy''s home depends on your own circumstances, and here we look at what you need to consider to make the best decision.

Evaluate your finances

Before you consider the current real estate market, you need to evaluate your personal situation. "If you have solid finances to buy your dream home - adequate cash, good credit scores and stable employment - and you've found your dream home, now is a great time to buy a home," says Nate Workman of Workman Success Systems, which specializes in training real estate teams and companies.