1. For my financial situation, prices are not yet at the levels that I want to buy.
2. Factors at work in our economy – tightening lending standards, job losses, foreclosures, and so on – will lead to a prolonged period of correction.
That’s not to say there aren’t great deals hiding out there, but on average things aren’t where the numbers work for me yet. For some, I’m sure they do. Prices in my area have only dropped 20-25% or so.
jpinpb, to answer your question it depends what you pay in rent primarily. My rent is still far lower than I would pay to buy, another reason I am waiting a little longer, and I save the difference for a down payment. But I have considered buying something equivalent to my rent until what I want becomes affordable.