This question is asked often. My best answer is I do not know. If I crystal ball I would be retired collecting mailbox money. It appears inventory is declining and and prices are slowing inching up. Is there ghost inventory, more short sales and foreclosures coming down the road. Yes for sure we'll continue to see more distressed properties over the next few years.
But you need to ask yourself this question. Am I buying a home or a home loan? Both would be the correct answer unless you are a cash buyer. So looking at the home loan rates are still at histiorical lows. Let's take a $500k home for example you are waiting for prices to drop say 10% or $50,000. But in the time it takes for the home to drop 10% the interest rates go up 1% This $450K home will actually cost you more than the $500K home with the increase in interest. Or it might just decrease your purchasing power. I had this experience in 2009 when rates bumped 1% in a day and them held there are a couple of months.
When is the best time to buy. NOW When is the best time to sell NOW. Because we have no idea what the future holds. If we did we would not be in the economic mess we are in now.
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