The first question on many people's minds when they initially realize that a market is going down is, "where is the bottom?" People have been asking that about the stock market and the real estate market for a couple of years now. Chartists pontificate about various chart shapes and how they are the predictors of future trends. Is the recession going to be U-shaped, V-shaped or W-shaped?
The truth of the matter is that no one knows for sure and won't know until way after the fact. The duration and depth of any market tumble or recession can't be known until we are in the next phase. Currently there is a great deal of discussion about defining the present economy and markets and many people are calling a bottom, middle, end, or calling for a crash or rally.
The proper way to evaluate your timing in any market takes into account many other factors. Personal factors about cash flow and savings, job security and risk tolerance. If you are looking for a mortgage, rates and availability of loans for the specific type of loan you seek.
So my point is, when someone claims it's the market bottom, the reality is, they are guessing unless they have a time machine. A more important question is, "Is this a good time for me to buy?" I think anytime in the next couple of years will be a good time to buy real estate, if it is a good time for you. Low interest rates and low house prices create an opportunity and if you have been considering a real estate purchase for the past couple of years, this is a good time. Will there be a better time in the future? Maybe, maybe not. Interest rates and relatively low prices are starting to attract buyers, but there is also good supply available. My feeling is that now is a good time to look, and if you find the right property at the right price, it's a good time to buy. If you can't find what you are looking for, you will probably have the opportunity to continue shopping for at least a short while until you do.
But try to avoid trying to buy at "the bottom." It's not a good use of time worrying about whether you captured the absolute best price or not, especially in real estate. Currently, there is enough desperation from sellers that great prices are currently negotiable and the rule of thumb I use is that if you are within 10% of the low price, you have done pretty well. Also, unlike the stock market, you can't pinpoint a specific time or price at which the real estate market "bottoms." If it works for you and feels like a good time, now is a good a time as any, and one thing I will guarantee is that it is not the top.
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