When is the best time to buy?

Here are some frequently cited reasons for buying a house:

  • You need a tax break. The mortgage interest deduction can make home ownership very appealing.
  • You are not counting on price appreciation in the short term.
  • You can afford the monthly payments.
  • You plan to stay in the house long enough for the appreciation to cover your transaction costs. The costs of buying and selling a home include real estate commissions, lender fees and closing costs that can amount to more than 10 percent of the sales price.
  • You prefer to be an owner rather than a renter.
  • You can handle the maintenance expenses and headaches.
  • You are not greatly concerned by dips in home values.