Ted (originally) from Chicago asks:

Great blog. As a former Chicagoian, I enjoy the Windy City perspective. As somone [sic] in the market, I appreciate the perspective. That said, do you ever recommend waiting vs. buying? I understand the logic of your arguments...and the bias.

And my thoughts on the issue:

Yes, I recommend waiting to purchase, although not very often. 

When I do recommend waiting to purchase, it's never related to a market condition (i.e. seller's market, low rates, etc.) but to a personal finance condition.

See, a person that plans for the future financially -- and even one who intends to plan for the future -- needs to be living within their own means today.  If a potential homebuyer is not on stable ground and/or disciplined with their dollars, he can cause way more harm than good to himself in the long run.

The cardinal rule?  Never, ever miss a mortgage payment.  No matter what.  If you're unsure of if can fulfill your primary obligation to your mortgage lender, you shouldn't buy the house.

This is one of the reasons why I am adamant about having a reserve fund -- even at the expense of a downpayment.  After all, the downpayment won't pay your mortgage if you employer furloughs your entire department, or if you take sick leave for an extended period of time.

Waiting to purchase a home because of market conditons is no different that trying to predict the future of IBM's stock price, or the White Sox.  Sure, everything looks good on paper, but unexpected events happen and that can have dramatic impact on the future. 

Personally, I don't like to gamble like that -- I am a bird-in-hand guy.  But, like I said, it's a personal preference.

Thanks, Ted, for the question.  Glad to know your cynical enough to know that I am biased.

Dan Green is an active loan officer. Email or call 513-443-2020. Dan is on Twitter at @mortgagereports.