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First time home buyer confused by market conditions. What should my plan be?

Hi! I'm a guy in my late 20s with a safe career. My salary is 80k/year and I am slated for an increase to 100k mid 2023 due to hitting an employment time milestone with my company. My credit score is 783. I have about 20k left (50% paid off) on my car loan that I pay $600/month for, but I get reimbursed about 2/3 of that from my company as a fixed rate, and I receive mileage reimbursement on top. If Biden's loan forgiveness goes through, I'll have about 12k remaining on my student loans, and 22k if it fails.

I had lived in an apartment in a major city in MD for the past 2 years. Rent was about 1700/month. I left recently due to an insane 30% monthly hike if I wanted to renew my lease. Been staying with my parents for a couple months contemplating what I want to do. Paying a small amount and helping around the house etc. but obviously not a permanent solution for a guy who values his independence. I'd like to start building equity in a home rather than burning half of my take home pay on rent, but am unsure if this is the right time in the market to do so.

I'm not looking for a particularly fancy place. Many of the older, but still nice, townhouses/homes I'm seeing in the areas I'd like to move are about 250-350k. New townhomes being built are being listed for much more - around 550k on avg.

Outside of my car loan, gas, a couple hundred a month for food, and my gym membership, I barely buy anything. But I also have very little cash right now. Major medical expenses derailed me last year and wiped out my savings. Sitting on just about 15k.

Any advice for me? I'm saving the vast majority of my paychecks for a future down payment, but am unsure how much $ I will need and what kind of loan I would be approved for. I am also unsure whether it's smart to buy now given the insane rates. Should I keep renting and try to save the remaining 25% or so of my paycheck? Should I swallow my pride and suffer an extra hour commute and stay with my parents to save way more of my paycheck? Do I have any other options? Appreciate any feedback!

submitted by /u/ThinIceDice
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source https://www.reddit.com/r/RealEstate/comments/yc42zm/first_time_home_buyer_confused_by_market/
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