Today as I visited with Realtors I was struck my the universal tone of what they tell me the consumer is saying
"How low are rates going to go?"
and
"We are waiting for the market to BOTTOM"
So, my natural question is "how will you know when the market has hit the bottom?" Will the Talking Heads knock on your door and sing to you? Will the news media announce it? Will Obama and his friends deliver your bailout? Will it knock you over as you are peering down and it is coming back at you?
Look, the real answer to all of these things is really simple. Can you the consumer afford to buy right 
now? Ask yourself this question, what are you paying in rent and what would your house payment be? We have all heard about how the credit market is tight and blah, blah and more blah. But, stop and think! With FHA and USDA loans and the 8 grand tax credit for first time home buyers (those that have not owned a home in 3 years) can you really afford to wait for the so called bottom?
Yes, you need a 620 score for the best rate (FHA is now 620 and it is the banks call not FHA and USDA is still 580 BUT you get tagged hard for under a 620). But at that score and with little to nothing down you are still at 5% or so.
A $150,000 loan at 5% is $805 a month!!!
What are you paying in rent?????
I understand that the world is a terrifying place right now. Will you get your 40 at work? Hell, will your company even be in business in a year? I so do get that, BUT you still have to have a place to live and you will be paying rent and with the affordability index at 176 vs. 106 in 2006 can you rent cheaper that you can own?
That my friends is the real question
Can you rent cheaper than you can own?
Not, when or where the bottom arrives.
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