Jimmyle – First and foremost I would say that this situation is in such turmoil right now that I don’t think anyone can give you an answer that is much more than a guess. There are strong arguments to be made for higher rates in the next year or two, and there are strong arguments for why rates will be lower. While many experts might try to convince you to think they know what’s going to happen, trust me, no one knows what’s going to happen.
Having said that, I’ll give you my best guesses. Yes, loans will be harder to get. Have no idea if rates will be higher or lower. Prices will continue to decline regardless. If your uncle is buying in the < $500k price range, we might be getting close to a bottom in that arena. In the $500-1mil range, I think we've still got a ways to go, but if the pace of declines picks up this fall, (as I suspect it will) maybe this fall or even next year might be okay to buy into. (But will have to wait to see) If your uncle is thinking of more than a mil for a place and he's got cash, tell him to get comfortable and relax, cause he's still got a bit of a wait.
'Course this advice is worth exactly what you paid for it.
XBoxBoy
