Not a hot time to buy if you mind the current state of the economy and can afford t qualify under stricter loan requirements.  If you can yes its a hot time to buy.  This is not a good sign for our economy.

It is a bad time for the economy, but an excellent time for buyers.  Rates are excellent and there are still plenty of 100% loan options out there.  It may not be a great time to buy if you're looking to sell in a year, because it may be tougher to sell a house a year from now.  But if you are wanting to hold on to the property to live in, or use it as a rental, then now is a great time to be purchasing.

I would give it about another year before it starts to turn around

Michael,

An excellent post.  I wrote on this yesterday on my blog.

The reason we are in a recession is b/c of the unstable market.  As an investor I would not buy unless I was willing to take the gamble ad PLEASE, PLEASE advise people to stay away from ARMS, adjustable BS loans, etc.  The mortgage crisis is one of the top 3 reasons why we are in this mess.

Educate your buyers please.  We all have to do our part to make American the prosperous country we Have been.  The world is taking note of our situation and we will pay for it.  If you are a gambling person then buy.  If you have no intention of moving, HAVE MONEY DOWN and the proper credentials to get into a QUALITY loan then go for it.

True, very true.  Now, how do I convince the buyers out there!

Vance have you taken the Recession into account.  Sorry but I have to sleep at night guys.  I think Danny is on point.  New home starts are way down and continuing to fall.  I work direct for home builders and know DR Horton is selling off land they planed to develop.  It is not a good time to buy regardless of rates.

I never want to have to convince anyone to buy something.

You have to look long term (5 years). Short term is almost always a poor strategy.

I let each buyer know it really depends on their own goals.  There is a not a one size fits all.  For some buyers, this definately is a good time to purchase.

So true Micheal. I tell everyone if they buy they are locked in for 5 years (minus investos who target short turn arond of course).

Joan also makes an excellent point.

There is a difference in my book between speculators and investors, Speculators are the short term, buy whats hot and hope, investors take a longer term look and make more informed decisions.

I have plenty of investors who are in it for the short term.  Either way to look at it people should be cautious right now.  Hopefully the retired community can help Phoenix b/c new home starts are way down in that area.

C & K Stevens - ARMs in and of themselves are not bad loand.  They're only bad when irresponsible people use them to buy more home (or homes in the case of the highly leveraged investors) than they can reasonably afford to buy.  Remember, loans don't kill value, people kill value. :-)  W

Are you not responsible for advising people????  Last time I checked most people have no idea what they should or should not do when ti comes to borrowing.  My definition of ethics comes into play here.  Sorry but I have to sleep at night.