While the sellers out there are in a fair amount of pain, buyers aren't feeling completely warm and fuzzy either!  It is true that they've finally got some negotiating leverage, really for the first time in years.  But there is also a lot of uncertainty among most buyers about whether to buy now or wait.  Will the market get even softer?  Will there be even better deals down the road?

My advice is generally that if you want to buy a house and you plan on staying in that house for three years or more, this is a great time to buy. The economic conditions are not such that we seem likely to see a prolonged market downturn or steep price declines over years. In fact, one reason the rental market is so overheated right now is that there are still tons of people moving into the area.  The economy here is strong and growing and most of those people coming in really do want to buy houses!

So eventually, this market will turn around.  What I can't tell you (what no one can tell you) is when!  You've probably heard what they call someone who tries to time the stock market....BROKE!  The experts can't do it in the stock market.  And I'll tell you that the professionals in real estate can't guarantee anything either!

You may save a few thousand dollars if you wait.  But you may not. The next economic report may push interest rates back down. Interest rates are already still at a relatively low point historically.  If rates start drifting back down again, the market is likely to respond to that with higher prices.  If you've been watching your dream house, waiting for it to get cheap enough to buy, you just might see it getting more expensive and out of reach!

So, if this is a home for your family and not an investment you're intending to flip, I'd say find what you want, use your agent's negotiating skills to negotiate a tough but fair deal, and buy the house you love.

For those investors out there, if you're buying to rent and hold for the longer term, there are some great deals right now.  That's why my phone is ringing with more investor calls these days!  But if you're buying to flip I'd say you need to sit on the sidelines a bit longer!