Is Now the Right Time to Buy Your First Home?

The fast read: Buying your first home is part math, part timing and part knowing why you want the house in the first place. Have that talk with yourself before you dive into the market.

3 things to know

• There’s probably never going to be a “perfect” time to buy your first home.

• Waiting on the sidelines can cost you, but so can buying before you’re ready.

• HGTV house flipping shows and keeping up with your friends are not good reasons to buy.

Timing a home purchase right is tough. Interest rates, mortgage approval, available properties, student debt and overall market conditions (namely, are we playing in a buyer’s market or seller’s market?) all seem to be working against you at the worst time. Interest rates may drop a bit, for example, but maybe your credit score needs some improvement. Or the right house comes on the market, but it’s just outside of the budget you want to stick to.

Even when you think you’ve got the timing right, the market has a way of humbling you. I’ve bought entry-level townhomes and sold them two years later for a profit, overpaid on others and had to stay longer than I wanted to make that up (good thing I loved that house) and left way too much money on the table trying to wrangle my way out of a marital home during a contentious divorce.

You Can’t Time the Real Estate Market

There’s no way to sugarcoat this: First-time buyers face some steep obstacles right now. Home prices are a particularly thorny issue. According to the latest State of the Nation’s Housing report from the Joint Center for Housing Studies of Harvard University, monthly mortgage payments on a median-priced home (which it says is priced at about $412,000) now sit at around $3,100, up from just $1,700 in 2020.

And the annual income needed to afford those median-priced homes nearly doubled during that time, from $66,000 to over $120,000 now. Interest rates aren’t at historic highs by any means, but they’re staying significantly higher than they were during the COVID years.

That puts first-time buyers in a tough spot. Waiting can be expensive if home prices keep climbing while you’re trying to save more, improve your credit or hold out for lower rates. Buying too soon can be expensive too, especially if you’re not financially prepared to handle the mortgage, insurance, repairs and other costs that come along with owning a home.

So yes, the timing question is pretty loaded these days. It depends on why you want to buy, what resources you have now and where you’re looking, because some areas of the country have appreciated a lot faster than others. There’s no one answer here, but you can ask better questions, look at the numbers and go into the process prepared for what it might throw at you.

HGTV, Well-Meaning Parents and the American Dream

Let’s face it, buying a home is the biggest financial decision most of us will make in our lifetimes, which brings us back to the question you’re here for: Is now the right time to buy your first home, or not? In the second edition of The Homebuyer’s Question & Answer Book, I talk about this kind of question we all Google at 2am as we’re listening to our upstairs neighbors stomp around after a night out at the club.

Or, when we’re waiting for a landlord to come snake a drain that’s already clogged three times this year. These emotional points can quickly drive us down the rabbit hole of Zillow and Redfin searches, looking for a place of our own.

These aren’t the only triggers that push people into the homeownership arena. Many of us have been told by our parents, grandparents, friends and media headlines that this is the “American Dream” that we should all be striving for. Without it, we feel like we’re missing out on a golden ring that the generations who came before us (seemingly) had ample access to.

But the truth is, homeownership isn’t for everyone, nor is it the only route. I have family members who have happily rented apartments, townhomes and single-family homes their entire lives, blissfully unaware of how much it really costs to replace an HVAC system, get a plumbing problem fixed at 10pm on Sunday night or cover rising homeowners insurance bills.

Good for them, honestly. They’re not losing sleep over a leaky roof or a furnace that gives out in January. But they’re also not building equity, watching an asset grow in value or living somewhere that’s completely theirs to paint, renovate or share with that big lovable dog the landlord never allowed.

Here are some things that get people thinking about buying their first or subsequent homes. Do any sound familiar?

→ Starting a family and needing more space.

→ Tired of helping someone pay off their own mortgage.

→ Relocating for work and over the temporary living situation.

→ Ready to move out of your parents’ home and have the down payment, credit score and financial footing to be able to buy instead of rent.

→ Sick of sharing a wall, ceiling, floor and/or common areas with your neighbors.

→ In a long-term relationship and ready to take the next step together.

→ Wanting some freedom to expand or permanently enhance your home.

→ Ready to start building equity in something that will likely appreciate over time (just ask the many homeowners whose houses are now worth 54% more than they were in 2020).

→ Living in an area where home values have remained fairly steady (or, are dropping now) and want to get in before they increase.

→ Tired of moving every time your lease is up.

There are also some not-so-good reasons to get into the market right now. I mean, so what if your best friend and her spouse just bought their first home and are loving it? That’s great for them, but homeownership is a deeply personal decision that really has to factor in your individual wants, needs, financial situation and future plans.

Here are some other times when buying a home may not be the best move:

→ You’ve been watching a lot of HGTV stars talking about how you can make money by flipping properties (most of it is for TV).

→ Everyone is telling you this is a “hot market” that you don’t want to miss out on (hot markets come and go, and timing the real estate market is extremely difficult).

→ Your parents, grandparents and pretty much everyone else in your family owns a home (it’s not always the default move).

→ You’ve had this “American Dream” drilled into you, but without understanding that the dream requires serious financial commitment, patience and an insomniac plumber who answers his cell at 2am.

→ Your job, location or plans still feel like they could shift in the next year or two.

→ You’re still not really sure what the monthly expenses are going to be and what you can comfortably afford (see my YouTube video Preapproved? Check your real budget first. for tips on how to make sure you’re not stretching your budget too far.)

Waiting may make more sense than buying in most of these situations, but it’s still a personal decision that should be based on your financial readiness, motivations and personal goals. There’s no shame in renting for another year, or taking your parents up on their offer to stick around while you get your down payment together. The houses will still be there when you’re ready.

Source: The State of the Nation’s Housing 2026

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About the Author

Bridget McCrea is an award-winning business journalist (Black Enterprise, Hispanic Business, Business Insider), book author (Second Homes for Dummies, The RE/MAX Homebuyer’s Survival Guide, Your First Business Blueprint) and StrongTide Press founder. She helps people make smarter decisions during expensive, stressful life transitions by giving them the information, expert insight and guidance they need to ask better questions and avoid costly mistakes.

Bridget’s latest release is the second edition of The Homebuyer’s Question & Answer Book: From First Steps to Closing Day, which gives first-time buyers the information they need to make the best choices for their budgets, lifestyles and goals. See it on Amazon

Free resource: Download the First-Time Homebuyer’s Home Tour Toolkit, three checklists you can use to tour and compare homes on facts, not feelings. Get the toolkit (No email, no registration – just grab & go.)