Is now a good time to buy a house? What to know in 2024

Buying a house is one of the biggest financial decisions you’ll have to make. If you’re wondering if now is a good time to buy a house, you’ll want to consider a few factors such as interest rates, home prices and sales.

Is it a good time to buy a house?

In reality, there may never be a perfect time to buy a house – it can be challenging any time, even when it’s a buyer’s market. Whether you should buy a home largely depends on your personal situation.

For instance, your budget, the amount you’ve saved for a down payment and your credit score all play a factor in whether you’re ready to buy a house.

How to determine if you should buy a house now

To decide if it’s a good time to buy a house, take a look at your financial situation and the current home prices in your area. If you have money saved for a down payment and your estimated mortgage payment is the same or less than what you currently pay for housing, buying now may be a good choice.

Keep in mind, you’ll need to make your offer competitive with other offers sellers might receive. An effective way to do that is to get a Verified Approval Letter ¹ before you look at homes. With the letter in hand, you can increase your chances of the seller taking your offer seriously.

Housing market conditions to consider

The current real estate market conditions are changing, making it all the more important to do your research in order to be more competitive as a buyer. Here are some of the main factors you need to know about.

Interest rates

Interest rates reached historic lows in 2021, making buying a home more attractive. However, rates continued to rise throughout 2022 and 2023, peaking in October 2023. Rates have started to trend slightly downward since, but they remain elevated.

Home prices

Home values rose dramatically throughout 2021 and 2022. While this accelerated price growth began to slow down in 2023, prices continued to go up. Government-sponsored enterprise  Fannie Mae indicates house prices will continue increasing throughout 2024.

Seller’s market

There are still fewer homes on the market than buyers looking for properties, making it a seller’s market. Fannie Mae suggests that low inventory conditions will remain through 2024 but could potentially decrease at the start of 2025.

Home sales

Homes have sold very quickly for the past few years, which impacts potential buyers. Buyers may need to make concessions or offer a higher price to help their offer stand out to sellers. Be sure to look at your budget before you start searching for homes so you’ll know what you can afford to offer.

Should you buy a house now?

Only you can determine if now is a good time to buy a house. Before you decide, carefully consider all relevant factors:

• Your financial situation: Mortgage lenders may consider your credit score and debt-to-income ratio (DTI) to guide their approval decision. Reflecting on your finances will also help you determine how much house you can afford.
• Market conditions: The real estate market is ever changing. Certain times have less competition than others. Be sure to take a look at its current state to ensure you’re making an informed choice.
• Your overall needs: Whether you’re a first-time home buyer or you need to sell your current house to upsize or downsize, be sure to have an idea of what features your next space must have.

Buying a home is a big commitment, so being confident when going into the home buying process is crucial.

FAQs: Buying a house now

Still wondering if it’s a good time to buy a house? The answers to these frequently asked questions may help you get closer to deciding for yourself.

How do I know if I’m ready to buy a house?

You may be ready to buy a house if your finances are in good shape. This can mean having money saved for a down payment, a good credit score and stable income. You’ll also want to evaluate if you’re ready to settle down in one place and take on ongoing costs like homeowners insurance and property taxes.

Should I wait for interest rates to come down before buying a house?

If you’re waiting for substantially lower interest rates, you may be waiting a while. Government-sponsored enterprise Freddie Mac predicts 30-year mortgage rates will average around 7% throughout 2024.

Is it smart to buy a house right now?

If your new mortgage would be less than what you pay now and you have money for a down payment and closing costs, buying a house could be a smart move. If you don't have money saved to cover these expenses, or if it would increase your monthly housing payment, holding off may be smarter.

The bottom line: The right time to buy a house is up to you

There’s no one right time to buy a home, and the best time to buy a house will vary for every prospective buyer. Consider your financial situation and understand how homeownership will impact your bottom line each month.

If you’re ready to start your home buying journey, be sure to start an application with Rocket Mortgage^® today.

1 Participation in the Verified Approval program is based on an underwriter’s comprehensive analysis of your credit, income, employment status, assets and debt. If new information materially changes the underwriting decision resulting in a denial of your credit request, if the loan fails to close for a reason outside of Rocket Mortgage’s control, including but not limited to satisfactory insurance, appraisal and title report/search, or if you no longer want to proceed with the loan, your participation in the program will be discontinued. If your eligibility in the program does not change and your mortgage loan does not close due to a Rocket Mortgage error, you will receive the $1,000. This offer does not apply to new purchase loans submitted to Rocket Mortgage through a mortgage broker. Rocket Mortgage reserves the right to cancel this offer at any time. Acceptance of this offer constitutes the acceptance of these terms and conditions, which are subject to change at the sole discretion of Rocket Mortgage. Additional conditions or exclusions may apply.