When and where to buy a home is tough to predict. Due to the massive amounts of money the fed has printed,that will hit the market at some point,I think that we are in for a period of high inflation in about 18-24 months. Probably in the range of 12 to 15%. How that will effect home prices probably will depend on the job market, which is probably going to get worse before it gets better. More jobs= more people with money to buy a house. More unemployed (despite the inflation) = a soft housing market and lower home prices despite inflation. As many have pointed out, the amount of foreclosures is artificially low so recent home bidding wars may cease if/when the pre-forclosure homes finally do hit the market, which may further lower home prices. If the pre-foreclosures do not hit the market, home prices may continue to creep up. Balancing all of these factors is difficult. I think that if someone is in a position of long term financial secuirity,ie a good/secure job, locking in a home at a reasonable recession price in the next 12 months at a fixed 30 year mortgage will probably make you look like a real estate guru in 6-10 years. I just bought a class A office condo for my office at $177/sq ft on a major road because I believe that now is a great time to buy foreclosed commercial real estate.Good luck.
