HOUSTON – With interest rates easing and more homes sitting on the market, many are calling this a buyer’s market—but financial experts say the decision to buy a home still comes down to personal readiness, not just market conditions.
Buyers are gaining more leverage
After years of intense bidding wars and rising prices during the pandemic, real estate professionals say the housing market is beginning to shift.
“We went from the crazy bidding war stuff during COVID to now what is in my opinion a buyer’s market,” said Blake Baker, Broker Associate with EXP Realty.
Buyers now have more options and more negotiating power.
“Buyers actually have the opportunity to go out into the market and see different choices and go make an offer under asking price for the first time in a while.”
Homes are also sitting on the market longer—sometimes around two months—giving buyers more time to evaluate their options before making an offer.
Experts say affordability matters more than timing
Despite increased inventory and softer pricing in some areas, financial advisors caution against rushing into a purchase simply because conditions appear more favorable.
A commonly used guideline among lenders is the 28/36 rule. It suggests that a buyer’s total housing costs—including mortgage, property taxes, insurance, and HOA fees—should not exceed 28 percent of gross monthly income. Total debt payments should stay under 36 percent of gross income.
Experts also often recommend aiming for a 20 percent down payment when possible to reduce long-term financial strain.
Understanding the true cost of homeownership
“One of the first things is just to make sure you understand the true monthly costs.. not just the principal and interest payments because interest rates are down,” said Troy Sharpe, CEO of Oak Harvest Financial Group.
He said buyers often overlook additional expenses such as property taxes, insurance, and maintenance, which can significantly increase monthly housing costs.
“You going to have cash reserves after closing to make sure that you can afford surprises that will invariably come up?” Sharpe added.
He warned that buyers should avoid stretching their finances too thin.
“You don’t want to be put into too tight of a financial position after the home purchase” Sharpe said.
Protecting quality of life after buying
Financial planners also say homeownership should not come at the expense of lifestyle flexibility.
“We want to be able to travel. We want to have some entertainment. We want to go to do some other things. We don’t want to just sit in our home because that’s all we can afford to do,” said Jeff Green of Winstone Wealth Partners.
He said buyers should think of the decision as part of a broader financial plan.
“It’s more of a planning market more than anything,” Green said.
Long-term perspective on market timing
Even as buyers try to decide whether to act now or wait, experts caution against trying to perfectly time the market.
“Markets come and go. There’s no such thing as a market that you’ll never see again. make a good decision and commit to it,” Sharpe said.
Who should wait before buying?
Experts say some buyers may be better off waiting if they are not financially prepared.
That includes individuals who do not have enough saved for a down payment or those who would deplete their savings after closing. Unexpected expenses such as maintenance or repairs can quickly add financial pressure, leaving homeowners “house rich but cash poor.”
In those cases, advisors say continuing to save and build financial stability may be the safer long-term decision.