My two cents: the risk to the downside on the economy far outweighs the upside risk. I am in the Pasadena area and sold my home in 2005 (for reasons other than speculation), but decided not to re-buy since I believed prices were way out of line.
We’ve been renting ever since and glad of it. I’ve been in federal civil service jobs and private, right now I work for a FFRDC (as close as you get to civil service, w/o being it) as a senior person who brings in more money than I cost–and I am concerned about my job).
I’ve been very gloomy on the economy and every negative prediction I believed has come true or been proven optimistic. We are at the beginning of a crap-storm that will last, at least, through ’09. Stick it out. Unless you get a major deal, stick it out, prices are not going up anytime soon.
Give it until the spring, at least. Good luck.
