Is now a good time to buy a home, or should I wait for prices to fall further?

This is an article from the REAL ESTATE JOURNAL by WALL STREET regarding the question: Is now a good time to buy a home, or should I wait for prices to fall further? They couldn’t have answered the question any better in my mind.

“Buyers, not sellers, set prices. This may seem counterintuitive, but all a seller can do is suggest an asking price. The real price is whatever a buyer pays for it.

In 2004 and 2005, home prices rose because buyers flooded the market — now prices are falling because buyers are sitting on the sidelines. Meanwhile, the number of homes being built hasn’t changed drastically; rather, supply is growing because existing-home sellers can’t figure out what buyers are now willing to pay, so their homes are sitting on the market.

Comps may not matter now. When markets are in upheaval, either up or down, recent sales of comparable houses are of less value than they are in more stable times. So take a look at public records, which are now often listed on Web sites, as well as Internet tools like Zillow and Trulia. But take them all with a grain of salt. They may be guiding sellers as they set their asking prices, but they don’t necessarily indicate what a seller will accept, since the market is in flux.

…

Timing the market isn’t possible. Although many economists predict that nationally, housing still has a way to go to reach bottom, you don’t have to wait for that to happen to get a good deal. In fact, it’s better to buy when housing is trending down than when it reaches the floor, since at that exact moment, the balance of power begins to shift toward the seller again. So if you see a house you like and can afford, make a bid now. And don’t worry about insulting sellers with a “lowball” offer. They may be desperate to move because of a new job, marriage, divorce, overstretched bank account or other motive. Yours may be the only bid they’ve received in months and they may be very glad to have it.”