If you buy now, the odds are pretty damned good that the value of the
home will continue to fall for at least a few more years. So you'll
have paid more than the home is worth. It hurts to be making monthly
payments on a big loan for an asset that's worth less than you owe on
it. And if you end up having to sell it, you might find yourself
forced to bring cash to the closing to pay the difference between what
you sold the house for and what you had left owing on it.

In general, the local market IS a consideration if you intend to move in a
few years. However, if you are buying to stay, a short-term decline won't
hurt so much. If the prices in your area are indeed in a decline AND
there are a lot of houses on the market, just make offers for
significantly less than asking prices. Eventually one of the owners will
be desparate enough to accept!



Anytime is a good time to buy so I agree with this assessment and could
speak only about my local area where the upside outweighs the downside by
far for long term investors. Besides if you buy right you will be that much
further ahead - there are super deals every month. Damn, I just missed one
where the house across the street was $100K below market!!