Buy if you must, that’s fine, just don’t confuse this advice with calling a bottom.

This isn’t the bottom, it is possibly a long way off, especially area like Temecula which have nothing but massive inventory, less jobs, and an expensive commute. Interest rates can’t get any lower, high commodities prices are causing a decrease in discretionary spending, and even the fed expects unemployment to continue to rise. Not to mention masses of REOs that are yet to hit the market. Anyone who thinks this “crisis” is nearly over and that the “mighty” US economy is about to rebound better think again.

Get caught up in the spring/summer buyers/suckers rally and enjoy the hype and bidding frenzies on the two or three great deals that hit the MLS every month, just don’t be surprised to see price declines continue for the next 2 years. Buy if you can live comfortably and have a decent down and find the home of your dreams. Don’t feel like you are going to miss out. The best deals are in the next 8-20 months ahead, I’m nearly positive. I know quite a few people who are planning or have to walk away from their homes. These homes will hit the MLS in about 10 months. There won’t be any thing close to resembling a shortage of inventory in Temecula/Murrieta/Winchester/Menifee/Wildomar for years to come.

I’m not saying not to buy, I’m saying if you do, accept the possible and likely fact that you may have paid more than you had too. I guess we can only bookmark this page to see how things look in May of 09, and then look back to see who called it the best.

The fed has learned that slashing rates and printing money didn’t work. There is no magic pill that we can take to fix things. The rest of the world will go on as planned, while we suffer through this hangover from years of over-spending, over borrowing, and over-consuming.