Do This While Waiting for Prices to Drop

If you think home prices or interest rates will drop, and you don’t want to buy until they do, then here are some things you can be doing in the meantime while you wait:

1. Get out of debt.

Why not take this time to reduce or eliminate debt? Houses are expensive and the repairs can add up. If you're on the edge before buying, things won't get better after buying. At the very least, restructure your debts and consolidate into a lower monthly payment that
fits your overall home ownership budget. If you currently own a home, consider using a home equity loan to pay off higher interest rate debt.

2. Save a 6-month emergency fund.

This is always a good idea, and if you're not ready to buy now, then bolstering your emergency fund is a great use of your money and time while you wait.

3. Put more money away for a down payment.

If you have enough money, you can certainly do 1-3 all three at once. But most of us need to do it in stages. By paying off debt first, you have more money to put into your emergency fund. Once your emergency fund is full, you have all that money now to put towards saving for the down payment.

4. Take more time to study the neighborhoods you want to buy in.

Over time, a closer look might make you rethink your initial decision.