If you're living in California—or planning to buy here—you’ve probably asked yourself this recently: Should I buy a house now, or wait it out a little longer?
It’s a fair question. Between rising interest rates, fluctuating home prices, and an unpredictable economy, the decision feels anything but simple. Whether you’re a first-time homebuyer in Glendale, a retiree in Pasadena, or an investor eyeing Los Angeles, what you decide now could shape your finances for years to come.
So, let’s unpack the pros, the risks, and a few tried-and-true money rules that can help you feel confident, whatever choice you make.
As of May 2025, the average home price in California is hovering just under $790,000. That’s slightly up from last year, but the market has cooled compared to its pandemic peak.
In places like Burbank and Glendale, we’re seeing more homes on the market than this time last year. More inventory means more choices—and, in some cases, more room for negotiation.
Meanwhile, mortgage rates have leveled off around 6.9% for a 30-year fixed loan. That’s higher than rates a few years ago, but much better than the spikes many feared in 2023.
(For those exploring mortgage refinancing services in Glendale, this stability might be a window to make a smart move before rates shift again.)
Let’s say you’ve got a stable job, some savings, and you're planning to stay put for a few years. In that case, buying now could work in your favor, especially if you're in a competitive but cooling market like Burbank.
Here’s why:
If you're a first-time buyer, you might find a real opportunity right now. Programs offering a First-Time Home Buyer Loan in Glendale can help you get into the market with less stress and better support.
But let’s be real: buying a home in California still isn’t cheap.
If your income is unpredictable, or you're working on your credit or savings, there’s nothing wrong with hitting pause. Here are a few good reasons to wait:
Remember, a home isn’t just a milestone—it’s a major financial commitment.
Not sure where you stand? Check out your Debt-to-Income Ratio.
Debt-to-Income (DTI)
Lenders generally want your minimum debt payments to be no more than 50% of your W-2 income or net income if you are paid on a 1099 arrangement. The debt payments include car loans/leases, installment debt (including student debt), minimum payments on credit cards. If you pay more than the minimum, that’s great, but lenders use the minimum payment in their calculations.
Debts also include your mortgage payment for the new loan and the property tax and insurance payments calculated on a monthly basis.
In sum, all of these monthly debt payments should be no more than 50% of your average monthly income. Mortgage brokers, such as those in Glendale, can work out the numbers for you, or you can use online mortgage calculators.
The amount of your down payment will affect the DTI. Larger down payments mean a lower loan amount, which means lower mortgage payments. But a lower down payment could allow you to have more funds for home furnishings or renovations.
Note: For high loan amounts, lenders use a lower limit for DTI of about 41%, though there are exceptions.
If you’re retired or nearing retirement, your priorities are different. You may be more focused on security than long-term returns, and that’s completely valid.
In these cases, buying a new home might not be the answer. Instead, tapping into the value of your current home through a reverse mortgage could offer flexibility without uprooting your life. A reverse mortgage company in Pasadena—like ours—can walk you through options that fit your specific needs.
Thinking about real estate as an investment? You’re not alone. Many buyers are seeking out investment property mortgages in Los Angeles to build passive income. If the numbers work and you’ve done your homework, this market can still offer strong returns, especially if you're in it for the long game.
There’s no universal answer to this question—only what’s right for you.
If you’re financially ready and planning to stay put for a while, it may be worth making your move now. The market has cooled just enough to offer some breathing room without collapsing. But if you’re still building your savings, or just not feeling 100% sure, that’s okay too. Waiting is a smart strategy when it’s done with intention.
Either way, you don’t have to figure it out alone. If you're unsure what you can realistically afford, talking to a local mortgage expert can help you cut through the noise and get real answers based on your situation.At The Friendly Lender, we’re here to help with advice that’s honest, no-pressure, and tailored to your life stage. Whether you're looking for the best home loan lenders in Burbank, exploring refinance mortgage options for seniors in California, or just trying to make sense of your choices, we’ve got your back.
