Is Now a Good Time to Buy a Home? Here's What Suze Orman Says

Many or all of the products here are from our partners that compensate us. It’s how we make money. But our editorial integrity ensures our experts’ opinions aren’t influenced by compensation. Terms may apply to offers listed on this page.

KEY POINTS

  • Buying a home could lend to more financial stability.
  • While there are plenty of good reasons to become a homeowner, now may not be the best time.

The financial expert has key advice for prospective buyers.

There's a reason so many people are drawn to homeownership. When you own your own property, you don't have to follow a landlord's rules or worry about a landlord having a change of heart (such as deciding to sell the place you're renting, leaving you without a roof over your head).

Plus, when you own a home, the money you spend on housing each month goes toward paying your mortgage. And as you whittle that loan balance down, you get closer to owning your home outright. When you rent, what you're doing is helping a landlord pay their mortgage. And don't you deserve that benefit?

But while there's much to be gained from buying a home, today's housing market is extremely tough -- so much so that in a recent podcast, financial expert Suze Orman point-blank said that now really isn't a good time to be buying.

Why it pays to wait to buy a home

As an expert in all things personal finance-related, Orman is keenly aware of how tight the housing market is. In fact, she says we may be at the top of the real estate market, which means home prices can really only go down from here.

But even if that's not the case -- say, home prices still have room for growth -- Orman insists that between rising mortgage rates and sky-high home values, it's really not a good time to be purchasing a home. On the other hand, buyers who sit tight and wait things out could benefit from much lower home prices in a year or two, assuming the market cools off.

Is that a reasonable assumption? It's fair to say yes. While experts aren't anticipating a full-blown housing market crash, home prices should start to fall to more moderate levels as buyers pull out of the market and inventory slowly but steadily increases.

Now to be fair, we can't say with certainty that 2023 will be a better year to buy a home than 2022, or that 2024 will be the ideal time. But what we do know is that housing market conditions today just aren't favorable to buyers. And because of that, waiting generally pays off.

What to do while you're waiting

If you're inclined to follow Orman's advice and hold off on buying a home, that doesn't mean you're just stuck in limbo. Instead, take the opportunity to better your financial situation so you're an even stronger buying candidate once the housing market opens up.

You could, for example, work on boosting your credit score so you're more likely to not only snag a mortgage, but lock in a competitive interest rate on your loan. You can also work on socking away extra money for a down payment on a home.

If, right now, you have enough saved for a 15% down payment, waiting a year could make it so you're able to put down 20%. That's a good thing, as it enables you to avoid private mortgage insurance on a conventional loan.

Today's housing market is really one of the most seller-centric ones we've ever seen. So why put yourself at an automatic disadvantage as a buyer? Waiting things out could work to your benefit -- eager as you may be to become a homeowner.

Alert: our top-rated cash back card now has 0% intro APR until 2025

This credit card is not just good – it’s so exceptional that our experts use it personally. It features a lengthy 0% intro APR period, a cash back rate of up to 5%, and all somehow for no annual fee! Click here to read our full review for free and apply in just 2 minutes.

Our Research Expert

Related Articles

View All Articles Learn More Link Arrow