I know the market is getting worse as I recently saw a friend of mine at church who happens to be a RE agent. She was trying to get me to buy a house and told me that soon all brokers and lenders will require a 20% down payment and good credit. No more funny money or numbers will be available. I told her politely thats fine as I am biding my time and putting money away for the down payment on a townhome and that the savings would be well worth it. Few Americans even save and live on credit so I know it will be good to buy in 3-5 years time.