I really think NOW is the time to buy.... sellers have brought their prices down, they're willing to do credits for closing costs, or to permanently pay down someone's rate - or both...  A lender I use, Wendy Cutrufelli, has the greatest rent vs buy spreadsheet I've seen.  It shows them monthly tax savings, year over year net worth gains, and more.  And for those buyers worried the prices may go down even more? Get a credit, get your payment down, and you'll feel like you're buying a lesser expensive house - that can bridge the gap if the prices do in fact adjust downward anymore.  If I were a buyer, I'd be buying!

Yes, Have you heard about Greenspan's book out now. He is suggesting that the feds need to raise the interest rate to double figures again.

What many do not realize, is this....everything is relative......if housing prices continue to go downward inevitably interest rates will go upward........to ward of inflation and keep the US from going into a recession.  Therefore you either pay higher mortgages due to interest rates and qualify for a lesser priced home or take advantage of the opportunities as presented today.

Rents are now starting to rise in various regions. There is much to take into consideration. If you can afford to pay $1800 PLUS in rents and plan on staying in the area for at least 5 yrs you can certainly take advantage of the market today and realize great tax benefits.

I certainly agree with all of the perks available today, including your mentioning of the seller buying down buyers points certainly makes for the opportunity for home ownership that will benefit buyers greatly.

For those buyers who can afford to, paying extra on the principle even twice a year will save you thousands of interest dollars down the road and help build up home equity.

I think what happened when the market started getting so frenzied is that many buyers lost sight of the fact they are making a business decision. With all of the newspaper hype about purchasing  while you can and virtually making offers without contingencies  set up the scenario we are having today.

Now the same media has caused widespread fear for those buyers who definitely would benefit from pursuing home ownership in todays market.

Home ownership is not for everyone. There are those who do not want the responsibility of upkeep and maintenance and who like to move frequently. Lets face it , you rent, the toilet breaks down, call the landlord. But there is nothing more rewarding for me to hand keys to first time home buyers and watch them re create a home into their personality and comfort level.

For those who are still yearning for home ownership, take heart, proceed with a plan, check with your CPA or tax advisor and play it smart. You do not have to buy the first home you see. You may find new construction more your liking or you may find a fixer upper that has character that will meet your real estate needs.

There is a great home out there waiting for its new owner that will bring years of enjoyment and solitude.