Absolutely not! If you can financially handle the mortgage payments and if you intend to stay in the same area for the next five years, now is the time to buy. We are in a buyer’s market and probably will be for a while, so take advantage of being in the driver’s seat on a home purchase.
Sellers are being forced to reevaluate the amount they want for their home. This reevaluation is making home prices more accurately reflect what the property is really worth. The potential for foreclosure is rising, as are the homeowners who realize that they need to sell their homes fast before they lose everything in a foreclosure. Homes are taking longer to sell and sometimes the seller is anxious to get rid of the house fast because he or she cannot afford two mortgages. All these negative things for the seller can be positives for the buyer.
Yes, money for mortgages is getting tighter, larger down payments are required, and lenders are making borrowers jump through more hoops to get a loan. However, that should give the buyer the security of knowing that if he or she can qualify for a mortgage in these times, his or her financial means probably will be sufficient to avoid foreclosure problems in the future.