Regardless of the market, you really need to asses your ability to buy first a house. Owning a home requires a much larger financial commitment than renting, and while it is wise to intend to purchase if you intend on staying in an area for many years, if you are not in the best shape financially this house will not be of much benefit for you.I would love to buy a house my self right now, as prices in the North East US are coming down like crazy, but I have tens of thousands in school debt and I will not purchase a home until I have those debts gone and at least a quarter of the home's price to put on the mortgage.You are ready when you have zero debt and have enough cash to put at least twenty percent down. You can afford it only if the mortgage is less than a quarter of your gross income.You should buy when it is right for you, not when the market says it is good.Rent cheap. Pile up cash and wait. Always look for deals is neighborhoods with potential.Most of all you need to learn from the mistakes of my fellow Americans who thought home ownership would help them; don't get in over your head, do not carry any more debt than a mortgage and always keep your eyes set on paying off that mortgage twice as fast as the bank says, you will save thousands in interest costs. Good luck.
In Canada our mortgage rates are very attractive and the prices of housing is varying in all pockets of the country. Check with a real estate agent to see what housing prices are now compared to what they were 6 months ago compare to what they were a year ago. This will give you a good snapshot of what has happened to housing prices in and around the area you are looking at.In terms of being financially ready it is very important that you can handle the debt. If you are currently renting and your mortgage payment would be close to the price of rent you also have to factor in taxes, other utilites, costs to furnish and cost of repairs.Consider as well if mortgage rates increase over the next 5 years will you be able to afford your payments in 5 years from now. Sure your income will change and your personal situation may change but you have to factor that in.You should find out how much house you can qualify for right now based on your income, your current debt level and then what you see in your future.There is lots of research that should be done if you are going to take the jump but the payoff in terms of a financial benefit could be great to if you find the right house at the right price and the right mortgage rate.Good luck,Victor
-------------------------------------------------- Canadian interest rates
I think it is important to be ready but it's unrealistic to wait until you are completely out of debt, many people have student loans and car payments and manage a home with absolutely no problems. Especially with the market being so good right now if you purchase a house you should be able to build a lot of equity as the market rebounds giving you a lot of options. When I purchased my home I had student debts and a car payment and after I owned my house for a few years I consolidated the debt into my mortgage and paid it down faster. I could not have done that if I didn't own my own home. As for waiting for a better deal I recently saw a great article that I think you would be interested in. Check out this article _http://www.quickmortgageapprovals.ca/articles/purchasing/should-i-purchase-my-first-home-now-or-wait-for-the-market-to-hit-rock-bottom.html.