When is the Right Time to Buy a House?

Most Realtors® will tell you it’s always a great time to buy. There’s some truth to that…but it’s oversimplistic as well.

Here's my thought process: the right time to buy a house is when your finances are ready, your life is stable enough for a 5-7 year commitment, and the numbers actually work for your situation. The market matters, but it matters less than you think compared to your personal financial picture.

That said, let me give you some context on what the housing market looks like right now, so you can make an informed decision.

What the National Market Looks Like Right Now

Home prices in most US markets have remained elevated relative to pre-pandemic prices. Appreciation has slowed significantly from the 15-20% annual gains seen in 2020-2022 (thank goodness!) We're seeing more modest, normalized appreciation in most markets. A normal yearly appreciation is in the 2-4% range.

Mortgage rates have been in a higher range compared to the historic lows of 2020-2021 (unfortunately, I know). That affects buying power. On a $300,000 loan, the difference between a 3% and a 6.5% rate is more than $600/month. That is a huge difference!

Inventory has been improving in many markets, though it remains below a balanced market in most places. For first-time buyers, this means more homes to consider than during the peak frenzy, but still competition for well-priced homes in desirable areas.

In Charlotte specifically, I track our Canopy MLS data month by month. The picture varies widely by property type and neighborhood. For current inventory and pricing data, reach out to me directly and I'll give you a real-time snapshot for the sub-market you’d be looking in.

The Questions That Help You Answer This

Instead of asking 'is now a good time to buy,' ask these:

• Are my finances ready? Good credit score, savings for the expected and unexpected costs (not just the down payment), income that's stable, reasonable (or no!) debt payments..

• Am I planning to stay for at least 5-7 years? On average, people stay in their first home 5-7 years. If you're likely to move sooner, the transaction costs of buying and selling make the math more risky.

• Have I explored what assistance programs might be available to me? Most first-time buyers assume they need more than they do. Down payment assistance programs exist in every state.

• Am I waiting because of financial unreadiness or out of fear? These two reasons have very different solutions.

The Case for Buying Now

You can always refinance later if interest rates fall. You can't go back and buy at last year's price. Buyers who waited for rates to fall just because they think the rates are too expensive will sit on the sidelines watching the market march on without them. Rates fluctuate daily, and timing the real estate market is impossible, just like timing the stock market is futile as well. No one knows the future.

Rent doesn't build equity. Every month you pay rent is a month someone else's mortgage gets paid. In most markets, rents also continue rising, which makes the monthly cost gap between renting and owning narrower over time even at current rates.

Time in the market matters more than anything. Home values in most US markets have historically increased over any 7-10 year period. The buyers who built the most wealth weren't the ones who timed the market perfectly. They were the ones who bought when they were financially ready and stayed long enough for appreciation and equity to work.

The Case for Waiting

If your credit needs work and 60-90 days of targeted work would open better options, wait and fix it. The rate difference between a 620 and a 720 credit score is a lot over a 30-year loan.

If your savings aren't there yet and you'd be buying with nothing left as a reserve, wait. Being house-poor immediately is a painful way to start homeownership.

If your income is unstable right now (recent job change, new business, variable income that hasn't stabilized), wait until you have 2 years of documentable income history.

If you're planning to move in 18-24 months, then renting might be the better option unless you’re planning to keep the house as a rental property. If that’s the case, make sure you put enough downpayment down (or buy down the rate if needed) to make the mortgage payments doable with current market rents, not what you hope rents will be in the future. If that math doesn’t work, then don’t buy.

What History Actually Tells Us

Every major economic period has produced people who said it was a bad time to buy. The 2012 buyers who bought during the recovery 'too early.' The 2015 buyers who were told prices were too high. The 2019 buyers who were warned about the overheated market. All of them, if they owned property long enough, came out ahead.

This isn't a guarantee that any specific purchase at any specific time will work out. It's context. The market timing question is way less important than the personal readiness question.

In Charlotte, I talk with first-time buyers regularly who've been waiting for the ‘right’ moment for years. In almost every case, the thing that was actually holding them back wasn't the market. It was uncertainty about their own financial picture. When we got a lender involved and ran the real numbers, they found out they were closer than they thought. The market didn't change. Their information did.

FAQ

Should I wait for a housing market correction before buying?

No. Corrections are hard to predict and harder to time. And in markets with real economic fundamentals like Charlotte, sustained major price declines require conditions that aren't currently present. Buyer demand has remained steady, Charlotte has seen continued economic growth and diversity. This creates a healthy housing market. Buy when the math works for your situation, not when you've predicted the market perfectly.

Is now better or worse than a year ago for buyers?

Depends on the specific market you’re talking about. In some areas, more inventory and slightly slower appreciation has given buyers more options and negotiating room. In others, the picture is more like pandemic markets with multiple offers. Local data matters more than national headlines. Reach out and let’s talk about what you’re looking for and how we can strategize around it!

What if I buy now and rates drop later?

Then you refinance. That's the 'buy now, refinance later' saying. Don’t count on interest rates to come down (because they may not). But if they do, then it’s a great opportunity to lower your mortgage by at least a few hundred dollars a month. You keep the equity and appreciation you've built in the meantime, and you reset your rate when the opportunity comes.

I'm Laura Shinkle, a Realtor® in Charlotte, NC specializing in first-time homebuyers. I help buyers across the country connect with the right local specialist in their market. If you want a real conversation about what buying looks like for your specific situation, that's exactly what I'm here for. 828.575.6067 or [email protected].

Laura Shinkle

Charlotte's First-Time Homebuyer Specialist | Realtor®

Coldwell Banker Realty | Licensed in NC & SC

CREN | PSA | CLHMS Certified

📲 828.575.6067 | 📧 [email protected]