<prompt> Human: I live in San Diego, working for about 6 years now. I have saved enough to afford the down payment for a home. The trouble is, that the home price has already hit an all time and continues to rise. Does it make sense for me to invest pretty much all my savings on a home right now? My biggest worry is, if the home price drops, and for whatever reason I am forced to sell, then I will be left without any savings and in debt! EDIT: Thanks all for your wonderful replies. Heres some information about myself. I earn about 115kbonus,stocks etc. Every year. My wife earns about 90k. Combined 220-230k when I include bonus. We have about 120k in 401k. Savings 120k in stocksmoney. The reason we havent been able to save as much in 6 years is cuz of the education loans, plus spent a huge chunk of money for our wedding. No kids... We have fairly stable jobs. No debt, education loan and car loans are paid off. I dont know if its the right time to invest. We wont have a problem paying the mortgage, but I want us to move to 1 location, with a good school district before we have kids. The trouble is like how all of you rightly pointed out, my savings.. Im skeptical of taking a risk and putting in all our money on the house, at the same time I dont want to spend 50k more 2 years down the line inflation in the housing market, plus we end up losing 50k when i take into account the 2k pm rent we pay every month.  <response>: Does it make sense for me to invest pretty much all my savings on a home right now?Financially speaking, it almost never makes sense to invest all your savings in a home. You should have an emergency fund built up independent of the downpayment, because things will go wrong with a house, and probably sooner than you think. 