Should I Buy a House Now or Wait? 10 Questions to Ask Yourself

Inventory: Are there enough homes for sale right now?

Higher inventory levels lead to a better scenario for buyers. More homes for sale means you not only have more options to choose from, but you also tend to get better prices.

According to the latest data from the National Association of Realtors (NAR), the total housing inventory in September 2025 rose 1.3% month over month, reaching 1.55 million homes, equal to about a 4.6-month supply. This level of inventory points to a seller’s market, where there are more buyers than homes available.

If you decide to buy now, you’re entering a competitive market where homes sell quickly, and scoring a discount can be challenging. If you wait, you might see more properties pop up, but you’re also taking a chance on prices or interest rates going up.

Pricing: Are homes priced to sell right now?

The median price for existing homes of all types hit $415,200 in September 2025, up 2.1% from $406,700 a year ago, marking the 27th straight month of year-over-year price gain. With rising prices, finding an affordable home may be more difficult, especially in hot markets. It means bigger down payments and monthly mortgage bills, which can stretch your budget.

On the bright side, steady price growth shows the market is strong, and your home could hold or even gain value over time. If you’re ready to act and shop smart, there are plenty of homes for sale out there that can work for you.

Financing: How do mortgage rates play a role right now?

After staying near 7% at the start of 2025, the 30-year fixed mortgage rate has fallen into the mid-6% range as the year comes to a close. Experts expect rates to hover around 6% throughout 2026. Still, many buyers are holding off. About 37% of lenders told HomeLight in its Q3 2025 Lender Insights Survey that their clients are waiting for rates to drop to 5.75% before making a move.

If you buy now, you lock in today’s lower mortgage rates and can start building equity sooner. Waiting might give you a shot at slightly lower rates, but there’s no guarantee they’ll drop as much as you hope.

If rates go up while you wait, your monthly payment could end up higher than it would be today. Home prices could also rise during that time, making the home you want more expensive. Basically, buying now gives certainty, while waiting is a gamble that could pay off or cost you more.

Economy: Will inflation affect a purchase right now?

Inflation in the U.S. edged up slightly, hitting 3.0% over the 12 months ending in September, up from 2.9% the month before, according to the U.S. Labor Department. That means if your monthly expenses were $5,000 a year ago, you’re now looking at $5,150.

As inflation rises and interest rates climb, many people feel the strain on their budgets. If you’re thinking of buying a home, it’s important to realistically assess what you can afford.

Carozza says, “Everything costs more money right now, and rates are higher. So buyers have to figure out what they can realistically afford without going into more debt on a monthly basis.”

While rising inflation may lower consumer confidence and purchasing participation in general, homebuyers could actually see it as motivation to buy now. Here’s why:

The housing market is shifting, with rising home prices, limited inventory in many areas, and mortgage rates hovering in the mid-6% range. Buyers in competitive markets may face tougher competition and faster-moving homes, while those in certain regions could have more negotiating power. Despite these challenges, acting strategically now can help buyers lock in a home and avoid higher costs from future price or rate increases.

The individual factors: Is now a good time to buy personally?

Market research aside, buyers need to evaluate whether or not this is a good time to buy a house on a personal level.

Buying now is the best idea for some people

It may be a good time to buy a home if you can answer “yes” to these five questions:

1. Do you have a high credit score?

To obtain a mortgage to purchase a house, lenders will pull your credit report and look at your credit score. While each lender is different in what score ultimately disqualifies an applicant, a general rule of thumb says that you’ll need a credit score of at least 580 for an FHA loan and 620 to 640 for a conventional loan. However, higher scores typically give you access to better rates and terms, an aspect that’s important if you plan to buy now.

2. Do you have a sufficient down payment?

It’s possible to obtain a home loan with as little as 5% to 10% down (lower for certain programs). However, a down payment of 20% or more will significantly decrease your monthly payment because you won’t be charged private mortgage insurance (PMI). With interest rates currently high, putting down at least 20% of the home’s price can give you a stronger position if you decide to buy now.

>>Learn more: Curious how much you need to save for your dream home? Try our down payment calculator to get an instant estimate and plan your next move with confidence.

3. Will you be living in the home for a while?

Closing on a home presents a significant expense, typically about 2% to 5% of the loan. On a $300,000 home with 20% down (thus, a $240,000 loan), that means you’d pay $4,800 in closing fees at a minimum. When you look at that sum over five or ten years of home ownership, it’s not that bad, but it’s definitely not something you’d want to pay twice in a few years’ time.

4. Are you in a position where buying makes sense?

Rents have been steadily rising in many parts of the country, and experts expect this trend to continue due to a combination of strong demand and slower construction of new rental units. This means that the lower rent prices some renters have enjoyed in the past may not last forever.

As such, some may find that buying a home now is worth it because it puts them in a better financial situation. However, “my rent just went up again” shouldn’t be the only reason to buy now. 

It’s still important to consider other factors, like interest rates and home prices, to see if you can manage mortgage payments in the long run. Thus, buyers should still run the numbers if they intend to buy now.

5. Are you in a position to negotiate?

Since sellers seem to be reluctant to price (and update) their homes to market standards, buyers will need to be prepared to negotiate if they buy now. Come to the offer table prepared with fair-market pricing data in your area. 

Don’t get talked out of contingencies that work to your advantage. And ask for necessary repairs to be made before closing. Working with a great agent can help take the stress out of these negotiations.

Waiting out the market is the best idea for other people

On the other hand, it may be best to wait a while to buy a house if you answer “no” to any of these questions:

1. Is there a high inventory of available homes in your desired buy area?

As mentioned above, inventory levels affect pricing. With fewer houses listed for sale, purchase prices go up because sellers know that buyers have fewer options to choose from. Low inventory can also create bidding wars and a lack of negotiating power on the buyer’s side.

A good buyer’s market is one with plenty of choices available. If your desired market location is lacking in inventory, it might be best to put off your house shopping for a while.

2. Do you have a low debt-to-income ratio?

Debt-to-income (DTI) ratio expresses the amount of your monthly income that currently goes toward paying off debt. Lenders look at this figure to determine the riskiness of offering a mortgage.

To calculate your debt-to-income ratio, add up all your current financial obligations and divide that figure by your total income. Typically, lenders want to see a DTI ratio of 36% or lower, though some may stretch to 45% with additional loan terms. Any higher, and your mortgage application will likely be denied, so work on paying off some debt before pursuing a home purchase.

3. Can you afford the moving expenses and home ownership costs?

If a down payment is going to deplete all your savings, it might be best to wait a while before buying. Don’t forget that buying a house also requires moving into it, and that’s not cheap! Average moving costs run around $1,250 for local moves and $4,890 for long-distance moves.

Carozza says, “Moving is stressful and expensive. That’s another reason why you don’t want to be moving every other year.”

And after moving in, you’ll also be responsible for all the maintenance costs. As a rule of thumb, be sure to budget between 1% to 3% of the home’s value each year for maintenance. For the first year, it’s best to err on the high side since you’ll probably have some repairs and updates you want to make immediately.

4. Do you anticipate a stable job and family situation for the next few years?

As already established, it makes better financial sense to be in a home for at least a few years. So as you’re evaluating readiness to purchase, be sure to account for any potential job transfers on the horizon. Notably, about 15% of people move to be closer to their work.

Also, consider whether or not you plan to add children to your household. This will largely affect home purchase decisions, from location and neighborhood type to home size. If there’s an imminent job or family change, maybe hold off on buying a house.

5. Do you have a clear picture of what you want?

Similarly, make sure that you (and your partner, if you have one) know exactly what you want in a house before jumping into a purchase. Make a list of non-negotiables as well as a list of desires.

Carozza says, “Buyers should not have to talk themselves into liking the house. It’s a big commitment, so if they’re not one hundred percent on board with the house and comfortable with where they’ll be coming home every day, then I wouldn’t buy the house.”

Weigh your readiness to buy a home now

Ultimately, the decision to buy a house now or wait is a personal one. Nothing is ever set in stone when it comes to the general economy and real estate markets. The best you can do is make sure that you have your own financial world in order, then do what’s right for your particular situation.

HomeLight’s Home Affordability Calculator and Down Payment Calculator can help you better understand the costs associated with buying a home. Along with the 10 buyer-assessment questions above, these free tools can help you get a better picture of what safe budgeting looks like.

A good local real estate agent can also help you assess your readiness to buy now. After all, they know the current realities of your market at a micro level. HomeLight can connect you with a top-performing agent in your area. We analyze over 27 million transactions and thousands of reviews to determine which agent is best for you based on your needs.

Editor’s note: This post is for education only, not financial advice. If you’re weighing whether to buy now or wait, consult your own advisor.

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