An old market adage says, only thing worse than buying (or selling) too early is trying to buy (or sell)too late.
You are making the assumption that prices are going to bottom then take off again. A ‘V’ pattern.
That is highly unlikely to happen. Whats more realistic is that prices drop and then are flat for a *long* time until all the inventory is worked off.
Look at TemeculaGuy, if he misses out on his ‘dream’ house, so what. There are three more of the same model for sale down the street! For even less now that the comps have been set.
Re:Rental markets. I think you are seeing a short-term effect. Once the renters have some money saved and prices fall even more, they are going to stop renting and buy. There will be such a glut of empty homes that rentals are going to have to fall as well to maintain equilibrium.
