Have we hit the bottom of the real estate market or are we close?  I would be surprised if there is one real estate professional left who has not been asked that question.  Of course no one, and I mean no one, knows the answer to that question.  In fact, if you ask a Realtor that question and he/she gives you a definitive answer, I suggest you run the other way.

My response to that question is usually ”If you are waiting until you are absolutely sure that we are at the bottom before you buy, then I can guarantee you one thing…. you will miss it!  You will miss it because the only way to know for sure that a market has bottomed out is to see it going up.”  It is like watching a stock you like go from $50 a share to $45, then $40, then $35.  You want to buy it but not until it hits its low.  So you wait a little longer.  Then it goes to $38 and you wait thinking it will come back to $35.  Then it is up again to $40 and continues up over the next two or three years until it is trading for $80. 

The question is, in two years from now wouldn’t you be happy if you had bought at any price point between $40 and $35.  My point is, I agree with those that believe there are some positive indicators occurring right now and I believe that the real estate market is between the theoretical $40 and $35 price point illustrated above.   Everyone agrees that prices will start back up eventually and unless you plan to sell your new home in the next year or so why wait?  When you find the home you want buy it and start enjoying the benefits and pleasures of a new home now.  Of course that depends on your ability to really afford it and that is a whole different discussion.