Wanting to jump in the market for a house

Timing a market bottom perfectly isn't likely. You should buy when you're ready.

It is a buyers market, but I just sold a house to the first person that looked at it......

Do your homework. Keep an eye on prices. Throw out a low price, take your time. Best of luck.

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I am just unsure of what I need to do. The housing market for buyers is great at this point, but I am not sure if I am ready to buy a house. The more I think about it the more I am pressuring myself into getting a house instead of renting. Does the money board think this buyers market will continue a few more years so I can wait until I am 100% positive?

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What does it look like when compared to renting? If renting is cheaper, maybe keep renting.

The only thing that makes me uneasy is interest rates being so low.

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I am currently renting now, but I am tired of just throwing money away. What % of my net income would be reasonable to spend on housing?

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Ideally stay around 25% with 30% at the top end.

35% is really pushing limits and should probably be avoided.

Explain to me my folly please, I just see my money going to someone else to help pay for their own home and expenses.

I really am quite naive to the home market so any advice help is appreciated.

Thanks for the link, kinda puts it into perspective.

What do I need to know before deciding to buy a house?

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I seriously doubt that a house that's renting for $1,000 a month is going to cost $400,000 - that ratio seems way out of whack for what I've seen, at least in NO.

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Seattle got there.

I agree with cous cous. That article did not appear to be comparing apples to apples.

To just go out and buy a house for the sake of "not throwing money away" isn't the best mindset to be in. I can show you plenty of people that bought a house and threw away money after the fact because they didn't do their research or due diligence.

Assuming you adhere to the 25-35% rule, you need to see what kind of house that is going to get you. Buying a house in the hood or 20 miles from where you work is probably not the best idea. Unless you like gunshots or sitting in traffic...some people do.

If all those numbers are in check then you need to see if you can even get a loan. If you don't have a credit score of 600+, they won't even talk to you about getting a loan. 20% down is a nice number to shoot for but 10% down with 10% in reserves isn't a bad thing to have as well.

Look for an area of town that you like and try to find a realtor who will show you some numbers about those neighborhoods. Best of luck on that because most only want people who are actively on the market for a house.

Do research on your own and ask questions.