I think we are getting ready to hear a strong chorus of bottom callers…..Again! It always happens this time of year as the actual selling season comes to a close and it gives way to speculation for next year. Cramer’s article last week calling a bottom is leading the charge…..Again! As has been stated the fundamentals are not suggesting a bottom, CA is in a Recession and that will more than likely get worse, the financial crisis is moving up the food chain into ALT-A and Prime, Banks are not lending due to the high cost of borrowing, etc, etc, etc. There is pent up demand on the sidelines but not as much as you would think, the lax lending that lead to this disaster pulled a significant amount of future demand in.
I think the same principals hold true when making a decision to buy a home in this environment, if you find a home you like that is within your means and have a high degree of confidence of holding onto the property for the next 7 years, no harm done, any other scenario the risks outweigh benefits IMHO.