Carlsbadworker I am pretty much in the same boat as Navydoc. The problem with waiting for positive sales numbers in the 3-6 month timeframe is that this may not occur for quite awhile. In fact if we hit a Japan like real estate market then you may be on the sidelines for quite awhile. I am not saying there is anything wrong with that strategy, just that finding the bottom and then catching the ride up is tough to do.
I am more of the opinion of purchasing what I can afford comfortably based on my own numbers. As a bonus I hope to have more of the downside risk that is in the market on my backside instead of ahead of me. Ideally I don’t see this happening until late 2010 but it is doubtful I can go that long. Unfortunately the neighborhoods I am looking are those that are the most out of whack according to the CS numbers put out by esmith. So yes I will buy as we will continue to go down but I will be in a fixed rate vehicle and I will not be overextended and my family will be much happier then they are now in our rental.
I do agree with the advice FSD gave and while I am not happy with giving a big downpayment, for me it will be a component of my purchase in order to make my mortgage payment doable even if my employment situation changes radically. I am pretty risk averse. For you maybe that works, maybe it doesn’t. I guess my point is that we all have different criteria/thresholds for purchasing.
