There is no denying – I am a realist. I’ll be the first to admit that we are in a terrible market right now. It’s likely that prices will continue to decline throughout this year. But here is the reality. We won’t know when the bottom has hit until we’ve already started to come out of it. So in actuality, there was never a better time than right now to buy a house, if you are planning to buy and live in it for at least two years. For the next two years, you can live in a new house, take advantage of the tax breaks that we receive as homeowners, receive an incredible interest rate on your mortgage (they are as low as 4.75%!) and be poised to take the rise in values that we will undoubtedly begin to see in the next few years. There has never been a better time to buy!
Also, keep this in mind. If prices go down by 10% but interest rates rise by 1%, the monthly payment stays the same. So any advantage you might receive by the loss in purchase price was just negated by the rise in interest rates.