Is this the right time to buy a home? 

In these shaky and uncertain economic times, many people are reassessing their financial situations and scaling back their overall expenditures as much as they can.  If you've been thinking about buying a home, you may be reconsidering such a major decision.  In the current real estate market, though, home prices have fallen dramatically, making purchasing a house a possible reality for many people.  But how do you know if it's the right time to buy a home?  Are the potential risks worth the investment?  Let's investigate the current market and weigh the pros and cons. 

With mortgage rate dropping and home prices falling by upwards of 15%, the real estate market is looking very attractive to many people right now.  As rates continue to decline, some experts advise waiting just a bit longer as prices keeps going down, especially in some markets (like Washington, D.C., and San Diego) where the housing boom was the greatest a few years ago.  Others, however, are advocating buying now to take advantage of these low rates.  Opinions vary as to whether buying right now is a smart decision financially.  The possibility exists that the market has not hit "rock bottom" yet and could decline more before ultimately stabilizing and beginning to rise once again.  If you find a property for sale for below it's market value, and you can ensure a low interest rate on a mortgage, it may likely be the right time to buy.  Be sure you've taken the multitude of variable factors into consideration, such as your job security, financing plan, and your current financial situation.  These are factors that can change for the worse unexpectedly, so it's worth seriously considering whether buying is the best option for you right now. 

After assessing the current market and the state of your finances, it's important to ask yourself a few basic questions before you decide to buy a house.  Are you ready for the commitment of buying a home?  Can you really afford to buy right now?  Does buying outweigh the advantages of renting a property?  Do some serious thinking about your answers to these questions.  This should point you in the right direction regarding buying a home.  If you're ready for the long-term commitment of purchasing a home and plan to keep the property for a long time, many experts say that that is a good sign that you're ready to buy.  Other positive signs include freedom from debt, your ability to handle monthly mortgage payments, and securing a fixed-rate (i.e., a 15-year fixed rate) on a mortgage.  Additionally, experts recommend building up your credit and seeking preapproval for loans.  Doing so will give you an extra advantage when you enter the market.  You'll be seen as a desirable buyer and prepared for the investment. 

Many experts are estimating that the conditions of the current market will likely extend through the next year.  This is good news for prospective buyers and suggests that now's the time to assess your condition for entering the real estate market and buying a home.