If the housing market acts anything like the stock market, there will be a big spike down in price. Just when there doesn't seem to be any more hope, then will be a good time. I don't know if and when it will ever get that bad, but having cash in such a time will be valuable.
Depends on where you are buying. Contrary to popular opinion, housing IS NOT a national phenomenon.
1. What location do you want to live in? 2. How much inventory is there on the market including MLS and FSBO? 3. What are the average days on the MLS and how does that compare month over month for the past 2 years? 4. What is the percentage of asking price that most sellers are receiving on houses sold? 5. What is current property tax policy for the area that you are looking at? Have there been any changes? 6. What does your credit look like? Is it above 680? Do you need to pay down some debts to get a better DTI? 7. How long do you plan on holding the house you want to buy? 8. How much payment can you afford on a monthly basis without becoming "house poor?"
My suggestion. Don't listen to the media's spew. Do your home work. My primary residence is in FL. I bought in NC last year. I am about to buy in MS and in GA this year. All 3 were different property types and were bought for different reasons. GLTY
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