I
t's a challenging time for homebuyers, with economic uncertainty and high prices making it difficult to determine whether now is a good time to buy. Despite this, house hunters have more options than they've had in years, and bargaining power is on their side.

    Even housing economists are struggling to decide when it's the right time to buy a home. Chen Zhao, head of economics research at Redfin, recently toured an apartment in Manhattan but couldn't shake off her doubts about buying a house now. "The answer is complicated," she said.

    Buyers face several challenges, including high mortgage rates and sticker prices for homes that are still elevated around most of the US. The median sale price has increased by almost 43% since the start of the pandemic, while the average rate for a 30-year mortgage has risen to about 6.8%. This leaves buyers in a tough position, with many struggling to afford payments on a home.

    Renting may be a more attractive option for some, as apartment prices are relatively cheap compared to mortgages or purchase prices. Renters also have flexibility and don't have to tie up all their capital in one place. However, even renters face affordability challenges, with the median renter household spending 29.4% of its income on housing.

    For buyers who can afford it, taking time to shop around and negotiate is key. With a larger pool of homes available and sellers more willing to cut prices, home shoppers have the upper hand. Buyers should also consider factors like mortgage rates, commission fees, and the potential for sliding prices before making a decision.

    Ultimately, the decision to buy or rent depends on individual circumstances and priorities. While uncertainty surrounds the housing market, experts offer guidance on how to navigate these challenging times. As Zhao puts it, "We're operating in a different world right now. Everything before this seems pretty quaint."