I understand there are many buyers still out there waiting and waiting for home prices to decline even lower to get the best deal out there. Some buyers even fearful and they convince themselves that if they purchase a home today, they still could OVERPAY for the AMERICAN DREAM. I came across a great article that was recently published in Times Magazine February 25, 2008 in the "Right on your Money" section by Dan Kadlec, states that "Fianance costs will rise as the economy recovers, so trying to time real estate might not pay off"
If a home costs $218,900.00 putting 20% down on a 30 years fixed rate at 5.5% your payment would be $994.31.
BUYING IN 12 MONTHS
Buying the same home at a price of $197,010 calculating that the home prices fall about 10% and the recessions ends, the Feds would increase the interest rate to about 6%, then the mortgage payment for the same home for a 30 year fixed loan would be $994.94.
He states that the bottom line is that waiting to buy does not necessarily save you any money but cost you money in the long run for the same home. It's certainly food for thought.
If I can email you this article, don't hesitate to email me or give me a call. HAPPY HOME BUYING.