YES, EVEN IF PRICES CONTINUE TO DROP

And here is why…… 

I know prices are dropping still (although last month they went up slightly) but is this a good time to buy?  The answer is a resounding YES.  If you bought a $200,000 dollar home (and for the purpose of illustration obtained a $200,000 loan), and that house drops 10% in the next year the math is easy, you just lost $20,000   BUT - and this is a big BUT - if you obtained a loan today for that house at 4.25%, and if that same loan in one year costs 6% then the difference in payment is a lot LESS if you buy the house now.  ($200k @ 4.25% = $984 / $200k @ 6.0% = $1,199) for a difference of $215 every month  Over 30 years that difference is a whopping $77,400!  One thing we have been assured of is that interest rates have to and eventually will be going up as the economy improves.