Are there a bunch of landmines scattered thru-out the housing market? You bet. Homes that are over-priced, have fallen into disrepair(some out of sight), neighborhoods that can and will continue to lose value, and many other potential pit-falls. It can be overwhelming trying to sort thru the mix.
But if you are looking for some of the greatest opportunities to increase your personal wealth now may be the best time for you. Prices have been correcting for the past several months. Banks have been left with no choice but to foreclose on hundreds, even thousands of homes in some areas. And all they want to do in most cases is sell these homes as quickly as possible in order to raise the bottom line. Prices in most areas are well below previous peaks. And with more foreclosures that means that the number of individuals and families that must rent is going up.
What does that mean for you? If you have been careful/cautious with your credit and your finances now is a great opportunity to have other people increase your wealth with their money. The banks money to finance your property, and a renter's money to make your monthly payment. Maybe even create a small monthly cash flow, but even more importantly. Just like every previous real estate market, this one WILL change. In the meantime it's a dangerous time mixed with a lot of opportunity.