Is it really that bad???

In response to a negative Real Estate article I wrote this response to a friend and thought I would share it here as well..

No, I actually see the market nearing bottom and personally I wouldn't wait to buy if I was in the market. Homes at the lower end are being snapped up quite quickly. There are plenty of cash buyers out there to snap up the good values. There can be a fight between the first time buyers and cash investors and cash is king. Several banks, HUD, and Freddie Mac are allowing owner occupants first dibs on homes, sometimes up to 30 days. Besides, the low interest rates are the real kicker today. A 1% increase in interest is the equivalent of a 10% increase in sales price. That can make a huge difference in what you can afford to buy.