Forecasters predict that banks will finally come to their senses and have to unload the inventory they have been holding onto in hopes of getting market value in a declining market, but to "bank" on that? Nobody can say for sure.
It might be a good time now to take advantage of the inventory available, and of the deadening activity in the Winter. Sellers may be more motivated during the slow season, but again -- nothing is FOR CERTAIN.
The best time to buy is when you need to buy and can afford it. Because a solid flip opportunity may be a thing of the past for now, it would be wise to buy when you know you can stay put for a few years in order to take advantage of the declining market's prices today, and the possible appreciation during the recovery of the market next year.
This is a good time to buy. We have a decent inventory out there and if new construction is your thing, you can get some nice incentives. Unlike other major cities, Chicago's home prices will not fall even if we hit bottom in our market trend. The prediction is that the market will start to recover in 2008, which means that sellers will keep their asking price steady. If you have trouble obtaining a mortgage, try the rent-to-own option. Right now that is the solution for mortgage and credit problems. (If you need more details on that contact me via e-mail). Take the time to go see what you can get for your money. Hire a Realtor and the real estate world will make more sense.