Ethan Young

You’ve probably noticed something strange if you follow housing market news.

Every headline screams “Perfect Time to Buy!” while your bank account whispers “Are you kidding me?”

Something isn’t right (and it’s not just your house payment calculator).

Real estate advice almost always tells you to buy, no matter what’s happening in the market. I started watching this after I lost money buying my first house in 2007. I noticed that “expert” advice rarely matches what the math shows, but it almost always helps the real estate business.

The people who really make money in houses aren’t trying to guess monthly market changes. They’re doing boring things that don’t make exciting headlines.

When you decide to buy a house, you need real math, not feelings. This is about using your own numbers with methods that actually help you succeed with money.

By the end of this guide, you’ll know exactly when YOU should buy, not what some TV person thinks the market will do.

You’ll have real ways to check if a house is a good deal, understand if you’re truly ready to buy beyond just your credit score, and spot neighborhood patterns that most buyers miss.

Now let’s look at the market signs that really show success, and they’re not what you’ve been told to watch.

Part 1: The Market Metrics That Actually Matter (And Why Most Don’t)

When deciding if it’s time to buy a house, you need to understand two key measurements that explain the real story behind the housing market.

• Median home prices
• Housing Affordability Index

These numbers will help you make a smarter decision than just listening to what real estate agents are saying.

What These Terms Actually Mean

Median Home Price: This is the middle price of all homes sold in an area. If you line up all home sales from lowest to highest price, the one in the exact middle is the median. The orange line on the graph shows this number has been steadily climbing since 2014.

Why it matters: This tells you what homes typically cost in an area, but it doesn’t tell you whether you can actually afford them or if they’re a good value.

Housing Affordability Index: This measures how easily the typical family can afford a typical home. A higher number means housing is more affordable. The blue line on the graph shows affordability was fairly steady until 2021, when it dropped sharply.

Why it matters: This combines three things that affect your buying power:

• Home prices in your area
• Current mortgage interest rates
• Typical household income

When the affordability index goes up, it means homes are becoming easier for people to buy, even if prices aren’t dropping.

What The Graph Shows That Most People Miss

Look at what happened between 2018-2020: home prices (orange) went up, yet the affordability index (blue) also improved. This happened because interest rates dropped enough to more than offset the price increases.

Then after 2021, affordability plummeted – not just because prices rose, but mainly because mortgage rates jumped dramatically. This made monthly payments much higher even though home prices only increased moderately.

This explains why timing your purchase based just on home prices can be a costly mistake. The affordability index gives you a clearer picture of what a home will actually cost you each month.

Your buying power depends on three factors working together, not just prices.

How To Use This Information Today

The affordability index combines three numbers that directly impact your monthly payment:

• Home prices in your target neighborhoods
• Current mortgage interest rates
• Your household income

Here’s how to apply this to your situation right now:

Calculate Your Personal Affordability Score

Your monthly income × 0.28 = recommended maximum for housing costs

Why 0.28? This is the standard debt-to-income ratio that most mortgage lenders use. They typically want your housing costs (mortgage, taxes, insurance) to be no more than 28% of your monthly income.

For example:

• Monthly income: $6,000
• Maximum housing budget: $6,000 × 0.28 = $1,680

Use a mortgage calculator with current interest rates to see what home price keeps your monthly payment under this amount. This tells you what you can truly afford, not just what you might qualify for.

Staying within this 28% guideline helps ensure you won’t be “house poor” with too little money left for other expenses and savings.

Track the Trend in Your Zip Code

Request median home price data from your realtor, and check median household income data through public sources.

Realtors typically have excellent data on home prices but usually don’t track income statistics. For a complete picture:

1. Ask your realtor for median home prices and days-on-market trends in your target neighborhoods
2. Find median household income data through FRED Economic Data
3. Use a mortgage calculator with current interest rates to see how these factors affect affordability

Popular real estate websites that offer market trends by location:

• Redfin Data Center
• Zillow Research Data
• Realtor.com Housing Market Trends

If you see stable or decreasing prices while incomes are rising, affordability is improving in that area—potentially signaling a good time to buy, similar to the small 2024 uptick shown in the graph.

Monitor Federal Reserve decisions that directly impact mortgage rates:

1. Watch for trigger events: The chart clearly shows how Fed decisions directly impact affordability. Key factors that influence Fed rate decisions include:
   • Inflation reports (higher inflation often leads to rate increases)
   • Employment data (strong job growth may prompt rate hikes)
   • Economic growth indicators (slowing growth may lead to rate cuts)
2. The 2024 inventory recovery suggests more housing options are coming, potentially improving your negotiating position.

Reliable sources for tracking Fed activity:

• Federal Reserve Economic Data (FRED)
• Federal Reserve Press Releases
• CME FedWatch Tool (shows market predictions for future rate changes)

Changes in Fed policy typically affect mortgage rates within days or weeks, giving you a valuable early warning system for shifts in home affordability.

Your Action Plan This Week

1. Get pre-approved to know your exact budget at today’s rates
2. Compare monthly payments between renting vs. buying the same quality home
3. Ask sellers about their urgency level – the recent inventory increase means some may accept lower offers than in 2021-2022

The best time to buy isn’t when everyone else says it is – it’s when the math works specifically for your finances. Use this affordability data to make a decision based on numbers, not emotions or market hype.

Part 2: Your Personal Money Setup (The Part That Actually Determines Success)

When considering “Is it a good time to buy a home?”, you need to understand what you’ll actually pay each month.

Let’s break down the costs for a first-time homebuyer in Florida purchasing a $400,000 home with just 3.5% down ($14,000) and a 6.5% interest rate:

Your mortgage payment includes four main parts:

• Principal: $439/month (the amount going toward your loan balance)
• Interest: $2,000/month (what the bank charges for lending you money)
• Property Taxes: $400/month (property taxes in Florida, which fund local services)
• Homeowner’s Insurance: $270/month (protects against damage to your home)

Plus, with less than 20% down payment, you’ll also pay:

• Private Mortgage Insurance (PMI): $320/month (typically 0.5-1% of your loan amount annually)

Private Mortgage Insurance protects the lender—not you—if you stop making payments. It’s required until you reach 20% equity in your home, which can take several years with a small down payment like 3.5%.

This gives you a total PITI+PMI payment of about $3,429/month

But this figure is just the beginning of what homeownership really costs.

The True Cost Formula Made Simple

Here’s what you’ll actually pay as a homeowner.

True Monthly Cost = PITI + PMI + Maintenance + Future Repairs

For our Florida first-time buyer example:

• Principal, Interest, Property Taxes, and Homeowner’s Insurance (PITI) + PMI: ~$3,429/month
• Regular Maintenance: ~$400/month (Florida homes often need extra maintenance due to heat and humidity)
• Saving for Future Repairs: ~$200/month

That’s about $4,029 per month in real costs – almost $600 more than just the mortgage payment online calculators show you!

Why You Need a Repair Fund: The Predictable “Surprises”

Your home will need major repairs. It’s not a question of if, but when.

Planning for these costs is crucial to determining if now is a good time for YOU to buy.

Major repairs aren’t surprises – they’re scheduled replacements you need to budget for:

• New roof: $15,000 every 20-30 years
• New HVAC system: $8,000 every 15-20 years
• Water heater: $2,000 every 10 years

If you can’t set aside $200-300 monthly for these inevitable expenses, you might not be ready to buy – even if the market seems favorable.

You’ll most likely end up “house poor”, which means having your home but struggling to maintain it or enjoy life beyond paying for it. Many people end up here, don’t be one of them. It’s not worth the stress.

The Down Payment Reality Check

Before asking if it’s a good time to buy, ask: “Do I have enough saved for a down payment AND an emergency fund?”

Your down payment is the cash you need immediately to secure a home. For a $400,000 home with 3.5% down, that’s $14,000 in cash that will no longer be available for:

• Emergencies
• Other investments
• Major life expenses

This leads us to the most important measure of homebuying readiness…

Understanding the Liquidity-to-Liability Ratio (Your Financial Safety Net)

This simple formula predicts how stressful homeownership will be for you.

Here’s how to calculate it: Cash You Can Access Quickly ÷ Your Annual Housing Costs.

This number is your Liquidity-to-Liability Ratio and will help you understand how comfortably you can afford a home.

What your “ratio” means

Your ratio matters more than market conditions in determining if it’s a good time for YOU to buy. Here’s what each level means for your financial well-being:

Below 0.5: High financial stress likely

With less than 6 months of housing costs saved, you’ll have no financial buffer for unexpected expenses. If your water heater fails or you lose your job, you could quickly face debt or missed payments.

You might need to use credit cards for emergencies, delay necessary repairs, or struggle to afford basic maintenance.

0.5-1.0: Some financial pressure

With 6-12 months of housing costs saved, you can handle one major expense or a short period of reduced income, but not both simultaneously.

You could manage a new roof OR a temporary job loss, but if multiple financial challenges hit at once, you might still face difficult choices.

Above 1.0: Financial comfort

With more than 12 months of housing costs saved, you can weather significant financial storms without risking your home.

You can handle major repairs, market downturns, or career transitions without the stress of possibly losing your home or accumulating high-interest debt.

1.5 or higher: Financial security

With 18+ months of housing costs in reserve, you’re positioned to not just survive but thrive as a homeowner.

You can take advantage of opportunities (like making improvements that increase home value) rather than just responding to emergencies. You also have flexibility if you need to sell during a market downturn.

Remember: Even if mortgage rates are at historic lows or home prices seem reasonable, buying a home with insufficient financial reserves often leads to regret.

Your personal liquidity matters more than perfect market timing when determining if now is truly the right time for YOU to buy.

Let’s calculate this with our Florida example:

Step 1: Determine your accessible cash after buying the home.

• Starting savings: $44,000
• Down payment used: -$14,000
• Closing costs (typically 2-5% of loan): -$10,000
• Remaining accessible cash: $20,000

Step 2: Calculate your annual housing costs.

• Monthly PITI + PMI: $3,429
• Monthly maintenance: $400
• Monthly repairs fund: $200
• Total monthly costs: $4,029
• Annual housing costs: $4,029 × 12 = $48,348

Step 3: Calculate your ratio.

• Liquidity-to-Liability Ratio = $20,000 ÷ $48,348 = 0.41

This ratio of 0.41 falls in the “High stress zone” (below 0.5), meaning you have less than 6 months of housing costs available in liquid assets. This suggests you might face financial stress if unexpected expenses arise or if your income is interrupted.

To reach a more comfortable ratio of 1.0, you would need approximately $48,348 in accessible cash after your home purchase—more than double what remains in our example. This is why many financial advisors recommend waiting to buy until you can make a down payment while still maintaining a healthy emergency fund.

The Bottom Line: It’s Personal, Not Just Market Timing

The best time to buy a home isn’t determined by interest rates or market conditions alone. The right time is when:

1. You have saved enough for a down payment
2. You still have 6-12 months of expenses saved after making that down payment
3. Your monthly housing costs (including maintenance and repairs) will be less than 25% of your take-home pay
4. You plan to stay in the home at least 5 years

Even the “perfect” market conditions won’t make homeownership a good decision if your personal financial foundation isn’t solid. The question isn’t just “Is it a good time to buy a home?” but rather “Is it a good time for ME to buy a home?”

Part 3: Timing Your Purchase (Personal Life Cycles Matter More Than Market Cycles)

Housing market timing matters, but not how most people think.

Your personal timing matters much more than what the market is doing.

The Surprising Truth About Purchase Date and Long-Term Returns

The government’s housing price calculator shows that homes across America went up in value by about 90% from 2000 to 2020. That’s about 3.3% growth each year. Even people who bought at the worst time (early 2007) saw their home values recover by late 2016 – after waiting about 9.5 years.

A 2018 study by housing experts discovered that while buying at a bad time hurts your returns in the short run, this matters less the longer you own your home.

The big lesson?

If you plan to stay in a home for many years, the exact month you buy matters much less than finding the right house at a price you can afford.

What this means for you:

• Stop worrying about finding the perfect month to buy
• Focus instead on finding the right house you can keep for years
• The combined effects of appreciation, paying down your mortgage, and using borrowed money overwhelm the timing issue

The Real Cost of Waiting – How Much Money Perfectionism Costs You

While buying at a bad time might hurt less than you think in the long run, waiting too long costs real money that few buyers fully understand.

In 2021, I thought about buying a house. My finances were in a good place and I could have made the deal but waited 14 months while renting a similar house.

My finances were in a good place and I could have made the deal but

Here’s what waiting cost me:

• 14 months of missed equity building: $11,200
• 14 months of mortgage paydown missed: $8,400
• House value increase during that time: $24,600
• Tax benefits missed: $4,900
• Total cost of waiting: $49,100

What did I save by waiting?

$0.

The market didn’t drop like I thought it would.

Even if I had been right and prices had dropped 5%, I would have saved about $15,000 – still much less than what waiting cost me.

The math rarely supports long waiting periods unless you’re sure a big price drop is coming.

Practical steps to take:

1. Set a clear timeframe for your house search (3-6 months is reasonable)
2. Make a list of what you need in a house
3. Buy when you find a house that fits your needs and your finances are stable

The Mind Trap of Thinking There’s a “Perfect Time”

Beyond the money costs, there’s a psychological trap in trying to find perfect timing.

Our brains are bad at predicting complex systems like housing markets, yet we believe we can spot patterns that signal the ideal time to buy.

Psychologists call this “pattern recognition bias,” and it’s why many potential homeowners who actually want to buy a home stay renters forever, always waiting for some perfect set of conditions.

What usually happens is that buyers wait, watching for a clear signal, while prices slowly rise.

Eventually, they buy anyway – usually at a higher price than when they started looking.

How to break this cycle:

• Add up what you’ve spent on rent over the last 2-3 years (money you’ll never see again)
• Think about how those payments could have built equity instead
• Accept that perfect timing is impossible in complex markets
• If your finances are in good shape, buy the house

Conclusion (Home-Buying Decision Made Clear)

After exploring all the data and real-world examples, here’s what truly matters when deciding if it’s time for you to buy a house:

The perfect time to buy isn’t about market conditions – it’s when your personal finances and life circumstances align.

Your decision should be based on these key principles:

1. Look beyond headlines at real affordability metrics – not just home prices, but the combination of prices, interest rates, and income that determines what you’ll actually pay each month.
2. Build your financial foundation first – ensure your Liquidity-to-Liability ratio is at least 0.5 (ideally 1.0 or higher) to avoid becoming “house poor” and truly enjoy homeownership.
3. Recognize that waiting has real costs – while perfect timing is impossible, analysis paralysis can cost you tens of thousands in missed equity building, tax benefits, and appreciation.
4. Plan for the long-term – research shows that if you’ll stay in a home for 7+ years, the exact month you buy matters far less than finding the right property at a price you can comfortably afford.

Remember that homeownership isn’t just a financial decision but about creating stability, building wealth over time, and having a place that’s truly yours.

When your finances are ready and you find a house that meets your needs, that’s your personal “good time to buy”, regardless of what market experts are predicting.

The best decision is one that works for your life, your goals, and your financial situation – not what worked for someone else or what some talking head on TV recommends.

Your future self (and family) will thank you not for perfect timing, but for making a thoughtful decision based on your own numbers and needs.

The age-old debate of whether to buy a home or continue renting has perplexed many individuals and families for years. While renting may seem like the more straightforward and flexible option, there are several compelling reasons to consider homeownership.

This article will explore the top reasons to buy a home instead of renting, providing you with valuable insights and examples to help you make an informed decision.

Building Equity Over Time

A major benefit of purchasing a home rather than renting is the ability to accumulate equity. As a homeowner, each mortgage payment you make increases your stake in the property. Equity refers to the difference between the current market value of your home and the remaining amount you owe on the mortgage. Over time, as you pay down your mortgage and if your home’s value increases, your equity grows.

How Equity Works

As you pay down your mortgage, your equity increases. Additionally, if your home’s value appreciates over time, your equity will grow even more. In contrast, when you rent, your monthly payments go towards your landlord’s mortgage or their pocket, and you don’t gain any equity.

Using Equity for Future Goals

After accumulating equity in your home, you have several options for utilizing this financial resource. These include:

• Refinancing your mortgage: This can potentially secure a lower interest rate, reducing your monthly payments or the overall cost of your loan.
• Obtaining a home equity loan or line of credit: This allows you to borrow against the equity in your home for various needs, such as making home improvements or covering other expenses.
• Selling your home: You can use the equity as a substantial down payment for a new property, making the process of buying another home more financially manageable.

Tax Benefits of Homeownership

Homeownership offers various tax advantages that renters don’t have access to, including:

Mortgage Interest Deduction: Indeed, homeowners have the advantage of deducting mortgage interest from their taxable income. This benefit can result in significant tax savings. Particularly in the initial years of a mortgage, a larger part of each payment is typically interest, rather than principal. Therefore, this deduction is most impactful during these early stages, as it can substantially reduce the homeowner’s overall taxable income.

Property Tax Deduction: The property taxes paid on your primary residence are deductible from your taxable income. This deduction can significantly lower your overall tax liability.

Capital Gains Exclusion: If you sell your home and meet certain criteria, you may qualify for a capital gains exclusion. This benefit allows you to exclude a portion of the profit from the sale of your home from your taxable income, thereby reducing the amount of tax you owe on the gain.

Stability and Control Over the Space You Live In

Owning a home offers greater autonomy over your living space compared to renting, with several key advantages:

Stability in Monthly Payments: One of the biggest challenges of renting is dealing with potential rent hikes. As a homeowner with a fixed-rate mortgage, your monthly payment remains consistent over the loan’s duration. This predictability aids in financial planning and offers a sense of security.

Freedom to Personalize: As a homeowner, you have the liberty to modify your home as you see fit. This means you can paint, update fixtures, or carry out extensive renovations without needing a landlord’s approval, allowing you to tailor your space to your preferences and needs.

Community Ties: Homeownership often leads to a deeper connection with your community. It provides a sense of permanence, enabling you to form lasting bonds with neighbors and engage more actively in local events and initiatives.

Long-Term Financial Benefits

While the initial costs of buying a home may seem daunting, the long-term financial benefits can outweigh the costs of renting in many cases. These benefits include:

Potential for Appreciation

As a homeowner, you stand to benefit from any appreciation in your property’s value over time. While real estate markets can fluctuate, historically, home values have tended to rise in the long run. This appreciation can contribute to building wealth and provide a potential return on investment when you decide to sell.

Forced Savings

Your monthly mortgage payments act as a form of forced savings, as a portion goes toward your home’s principal balance, gradually increasing your equity. Over time, this can help you accumulate a substantial amount of wealth in the form of home equity.

Lower Housing Costs in the Long Run

While mortgage payments may initially be higher than rent, they typically become more affordable over time, as rent prices tend to increase while your mortgage payment remains the same (if you have a fixed-rate mortgage). Furthermore, once you’ve paid off your mortgage, your housing costs will significantly decrease, whereas renters will continue to pay rent indefinitely.

The Pride and Satisfaction of Homeownership

Owning a home can instill a sense of pride and accomplishment that is difficult to replicate when renting. Homeownership allows you to:

Create a Sense of Belonging

Having a place to call your own can foster a strong sense of belonging and help you establish deeper roots within your community.

Accomplish a Major Life Goal

For many people, owning a home is a significant life goal, and achieving it can provide a feeling of accomplishment and increased self-esteem.

Leave a Legacy

Owning a home can create a lasting legacy for your family, providing a stable place for future generations to create memories and build their lives.

Conclusion

While renting may seem like the easier and more flexible option, there are numerous reasons to consider buying a home instead. From building equity and enjoying tax benefits to having more control over your living space and experiencing the pride of homeownership, the advantages of buying a home often outweigh those of renting. By carefully weighing your options and considering your long-term goals, you can make the best decision for your housing needs and financial future.

Are you ready to bid farewell to your old laminate flooring and welcome a fresh new look for your space? Removing laminate flooring can be a daunting task, but with the right tools and a bit of patience, you can tackle this DIY project like a pro.

In this article, we’ll walk you through the steps on how to remove laminate flooring, provide helpful tips, and guide you through the process with ease.

Preparing for the Removal Process

Before you dive into removing your laminate flooring, it’s essential to prepare the area and gather the necessary tools. Here’s what you need to do:

Clear the Room

Make sure to remove all furniture, rugs, and any other items from the room. This will give you ample space to work and prevent any damage to your belongings.

Gather the Tools and Materials

To remove laminate flooring, you’ll need the following tools and materials:

• Pry bar
• Hammer
• Gloves
• Knee pads
• Safety goggles
• Dust mask
• Garbage bags or a container for debris

Put on Safety Gear

Safety should always come first. Ensure you’re wearing gloves, safety goggles, and a dust mask to protect yourself from dust and debris during the removal process.

How to Remove Laminate Flooring: Step-by-Step Guide

Now that you’re prepared, it’s time to get down to business. Follow these steps to remove your laminate flooring with ease:

Step 1: Remove Baseboards or Quarter Rounds

Start by removing any baseboards or quarter rounds along the perimeter of the room. Gently pry them away from the wall using the pry bar and hammer, being careful not to damage them if you plan to reuse them later.

Step 2: Identify the Starting Point

Laminate flooring is typically installed using a tongue-and-groove system, meaning that the planks interlock. Identify the starting point by locating the last row of planks installed, usually found near a wall.

Step 3: Begin Removing the Planks

Using your pry bar and hammer, gently lift the edge of the first plank in the last row. Once you have enough leverage, carefully pull the plank up and away from the adjacent piece. Continue this process, removing the planks one by one.

Step 4: Remove Remaining Rows

With the first row removed, continue working your way through the remaining rows of laminate flooring. As you remove each row, stack the planks in a designated area or dispose of them in garbage bags.

Step 5: Clean the Subfloor

After all the laminate flooring has been removed, inspect the subfloor for any remaining adhesive, underlayment, or debris. Use a scraper to remove any stubborn residue and thoroughly clean the subfloor before installing new flooring.

Additional Tips for a Smooth Laminate Flooring Removal Process

To make your laminate flooring removal process even more efficient, consider these additional tips:

Work with a Buddy

Having a friend or family member assist you during the removal process can speed up the job and make it less physically demanding. Plus, it’s always more enjoyable to tackle a project with some company!

Plan for Disposal

Before you start the removal process, make a plan for disposing of the old laminate flooring. Contact your local waste management facility to inquire about proper disposal methods, as some materials may require special handling or recycling.

Take Breaks

Removing laminate flooring can be physically demanding, so be sure to take breaks when needed. Listen to your body and pace yourself to avoid injuries or excessive fatigue.

Be Prepared for Surprises

Sometimes, removing old flooring can reveal unexpected issues, such as damaged subfloors or hidden mold. Be prepared to address these problems before installing new flooring to ensure a stable and healthy environment for your home.

The Benefits of Proper Laminate Flooring Removal

Taking the time to remove your laminate flooring properly offers several benefits:

• It allows you to inspect the condition of your subfloor and address any potential issues before installing new flooring.
• Proper removal helps to minimize damage to the surrounding walls and trim, saving you time and money on repairs.
• By removing and disposing of old flooring materials responsibly, you’re contributing to a cleaner and more sustainable environment.

Conclusion

In conclusion, learning how to remove laminate flooring can be an empowering and cost-effective DIY project. By following the guidelines and tips provided in this article, you’ll be well-equipped to tackle this task with confidence and skill. So, roll up your sleeves and get ready to transform your space with a beautiful new floor!