Resist home-buying pressure, Suze Orman advises
The recent rise in housing prices and the decrease in supply in certain parts of the country have some people willing to spend every nickel they have to get into the market now.
But Suze Orman warns hopeful homebuyers not to be hasty and end up house poor.
On Saturday's episode of "The Suze Orman Show," Jean of California asked Orman if it would be wise to tap her savings and retirement to put down 50 percent on a townhouse to ensure that she gets approved despite her income situation. Jean, 43, is going through a divorce and working at a temporary job but insists on buying a home now.
"The reason I must buy now is I found this fabulous location. It's a new build in Southern California, and … right now in Southern California there's no inventory," she told Orman.
To add to the sense of urgency, home values rose 12.2 percent in the second quarter from compared with the same period last year, according to the National Association of Realtors.
Even with such growth, though, Orman advised caution.
"I'm asking you to slow down," she said. "There will be other opportunities. This will not be the last time that you're able to buy something.
"Do not touch the money in your retirement account," Orman added. "You're going to be retired before you know it."
She also warned against cashing out other investments to buy a home hastily.
"The other money that you have needs to start growing as well … not just in real estate but in investments, so you have some diversification," Orman said.
See what else Suze Orman has to say every Saturday at 9 p.m. ET on CNBC.
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—By CNBC's Sakina Spruell. Follow her on Twitter @SakinaCNBC.