As a Realtor, I take what our "leaders" say with a grain of salt. You can use numbers and speculation to make valid points in either direction, but ultimately it comes down to the buyer's gut feeling. One person who responded to this article yesterday stated "they wouldn't buy until things hit bottom, not a day before". I agree with that sentiment except, how do you know when things have hit bottom? If any economist or I had that answer, we would all be mega-millionaires. Doesn't everyone want to buy at the absolute bottom and sell at the top???Overall, home prices are probably still too high, but there are still great buys right now that will be great buys even if the market falls further. If we knew that interest rates would be significantly lower in the future and prices would come down as well, waiting would make sense. If prices fell some, but rates went up a little, then, at best, you'd be where you are now and you would have wasted time building potential equity through principal reduction. The government has helped keep rates low during this tumultuous time, but I'm sure rates will tend to go up as things get better. If you build in a buffer for further declines now, you get the benefit of exceptionally low rates, seller incentives and maximum selection options. I would also add, that owning a home is not simply just an investment. Having the ability to get into a more desirable location or to obtain amenities previously unattainable offers purchasers an element of emotional stability, as well as finacial stability with the right purchase.

While I haven't blogged in forever, unfortunately, I do follow this blog (thanks Jamie, I think you're doing a great job). I will say that Mr. Cantalupo has been one of the most honest and upfront RE agents in the game today. He was reporting real sales and price declines in the hottest city areas while many, including the Sun, were still perpetuating the bubble. If I'm buying in the city, I'd trust him in a heartbeat. And people, do your own research. If you see you're paying 25% or whatever more than the previous owner, find out why. If you see bubblicious prices, do some digging using the references Jamie has in the sidebar and find out what your sellers mortgage is and if they have room to negotiate. I live in Perry Hall and am continuously stunned by the asking prices I still see. In Baltimore, there are few deals, but there are deals. It requires patience and due diligence. But still, I say the majority of sellers and agents continue to delude themselves about the value of local real estate. How else can you explain the precipitous drop in sales that has perpetuated throughout 2007? This trend will continue through 2008 and beyond until income catches up with prices, or prices fall to match incomes, it really is that simple.

I am also a Realtor and agree with Dominic. A buyer will never know that the market has hit the bottom- until it starts going back up. By that time, sellers will also know that the market is trending up and may be more reluctant to offer concessions, or accept a low offer. Many sellers may decide that there will be other buyers willing to pay more, if they wait.

My crystal ball is broken, and I don't think the "experts" have a crystal ball either. The current market, in the Baltimore metro area, is certainly a "buyer's market". Prices have dropped significantly below the 2005 peak. Interest rates are low- for credit worthy buyers. Many sellers are willing to listen to reasonable offers, or offer concessions to buyers.

Historically, the Baltimore metro area has been a good area to invest in real estate. Our economy is diverse- government, military, transportation, retail, financial, banking, etc. When we have lost manufacturing jobs ( GM, Beth Steel, etc), other segments of the economy have filled the void. Unemployment is low. Other areas , like Michigan, have been devastated because their economy was based on one industry ( automotive).

Should a buyer buy a home today? Like Dominic said- there are great deals out there. A buyer has to do his homework and buy the right property, in the right location, at the right price, with the right financing.

When I became an agent , I was given a good piece of advice- "Remember- you make money when you buy a home, not when you sell it". If you do your homework , as a buyer, you will be successful when you become a seller.

At the risk of making this thread of comments look like "realtors who are just trying to convince the public to buy," I thought I'd add my two cents. Waiting for "rock bottom" as some buyers describe causes you to lose one very important advantage that buyers have in today's market, which is choice. Let's not forget that when things hit rock bottom, everyone will be buying, and this will sell more quickly. If to take advantage of the excess of inventory available right now, factor in the idea that prices may still come down a little, you will be happily settled in your new home as your friends are frantically trying to find something.

I never heard anything else from realtors, than the mantra: buy now, it is a great time to buy! They recognize they don't have the crystal ball to know when the market hit the rock bottom, but they seem to have the most reliable info from the future concerning the ways how YOUR money needs to be spent. All for the sake of their 3% - the sole condition being BUY NOW!

Well, it is my impresson that - even more than the unsold housing inventory - there might be a surplus of realtors in this country...

Thanks for the wonderful blog Ms. Hopkins!

Ditto with all of the other respected Realtors who commented. People buy on the way up not the way down or even at the bottom.