There's been a lot of hype regarding the current Real Estate market. When a person(s) are trying to decide whether it would be a good time to purchase a home, they should take all issues into consideration. When you continue renting you are paying someone else's mortgage. If I was in thinking about buying a home, I would consider several things:
(1) Review my credit report & see what I can possibly do to improve it
(2)Talk to a mortgage broker or mortgage banker who can arrange financing for my particular situation & complete a Loan Application. Nothing ventured, nothing gained.
(3)What would I need in terms of money for down payment & closing costs, what size loan I can qualify for, and what my estimated monthly payment would be?
(4)Look at the big picture: Am I ready for Home Ownership, am I prepared to make sacrifices, and have I considered all the variables regarding a home purchase:
Price-Equity Buildup-Appreciation-Tax Benefits-Overall Wealth Creation & How this purchase fits into my short & long-term investment goals. You will always come out ahead buying. The problem arises when homeowners get into the wrong type of loan or continually tap their equity which reduces any gains they may have realized. Hope this was helpful. I am a Loan Officer and I continually see these same patterns & thinking. There is no easy pill for anything that's wothwhile in life.