Many people ask me if I think the real estate market has bottomed out. I don't know. However, for a lot of people, now is the time to buy.
Look at the numbers. Every situation is different. My mother is a great example. She was renting a 2 bedroom, 2 bath condo for about $1300 per month. In 2007, she bought a 3 bedroom, 2 bath house. Her payment is about the same as the rent. Her annual cash flow has improved because the interest is deductible and she saves on income tax.
Although the value of her house has declined, it has declined by less than she would have paid in rent. Not only has her cash flow improved, her net worth has also improved.
Every situation is different. However, look at your numbers. Now is probably the time to buy.
Dr. Affolter is a chiropractic expert. However, he also has a MBA and a real estate license. In 2004, he wrote From Paint Rags to Riches - Becoming a Real Estate Millionaire. He sold his personal residence that year and became a renter. In 2008, he built a new home using his son's construction business. Although he was recommending selling or refinancing in 2004(http://affoltersinvestmentcomments.blogspot.com/), he is now advocating buying real estate for some investors.