<prompt> Human: My main hesitation in purchasing a home is the fact that housing prices are rising dramatically in the area I wish to purchase Minneapolis Metro area. The home I wanted in 2011 in golden valley is now up in price by 30. Also, interest rates are rising. Do I pull the gun now before they keep rising or do I wait until the next bubble pops? Is there going to be a next bubble? so many questions. Here are some factsstats to consider: -Annual income of 95,000-Single-Supporting one child - payments of 650 a month-No Car or Student Loan Debt or debt at all. -Bring home 4,983 a month after 401KRothDeductionstaxes-Current savings is 1,000 I have spent the past 6 years paying off 60,000 worth of debt and threw all my extra cash towards it -current rent is 735 a month. I am a minimalist, and value my time and have little clutter. due to this, I have am happy with my place right now. There is very little to maintaindont have to mowreplace furnacefridge etc. It is 700 sq feet and is more than enough space for me for now. What is most important to me, in life, from a things to do standpoint, is to be able to have enough income to give myself the basic needs basic foodshelterreplacement clothing and have money left in order to entertain myself try a new restaurant once a week, go out once or twice a week etc and take an occasional vacation without having to constantly budget and monitor my finances or skimp. I have calculated that in order to live that lifestyle, I need around 60 dollars a day after all fixed expenses. Also what is important is to have my own home and especially a place for my little one he is 2 now to run aroundinvite his friends overhave his own room. I can save up the necessary 20 down payment in around 3 years, at which point my income will rise probably another 10-20. Problem is, I am struggling with choosing the right time to buy a house.To be honest, I would be perfectly happy keeping my same living situation right now for another 3-4 years and buying the house later. however, I fear that once that point comes housing prices will be through the roof and the house that was 175,000 in 2011 and is 225,000 now will be 275,000 in 2014. Do I pull the trigger now out of fear of rising prices and move into a house which I wouldnt mind but I am happy with rent now, or buy a house when I myself feel ready but risk paying a couple hundreds dollars more in mortgage?  <response>: -Current savings is 1,000Honestly, all of the rest of your post is moot. You dont have anything towards a down payment, let alone enough to even cover a basic emergency here. Its going to take you quite a bit of time before you could build up a proper emergency fund that anyone who rents or owns should have, let alone enough to set aside for a down payment.Do I pull the trigger now out of fear of rising prices and move into a house which I wouldnt mind but I am happy with rent now, or buy a house when I myself feel ready but risk paying a couple hundreds dollars more in mortgage? And how do you know that in a few years that the same house wont be back at 175k? You have no guarantee that real estate prices are going to continue to rise. Historically, they barely track inflation over the long term.You really cant pull the trigger now as you dont have any money for a down payment, let alone money to put into the house upon moving in. You will need money for closing costs, moving, insurance, new furniture, minor repairs, etc etc. I dont even think you can approach the issue until you have more of a savings. You certainly dont want to get into a situation now where you are putting a minimal amount down and are subject to PMI, or subject to instantly being underwater or house poor if you were to purchase in the near future. 