It's still a good time to buy, interest rates are still good, although they have creeped up a bit, and if you're looking to making a purchase, like an area and are financially sound go for it.

Home prices are starting to stabilize, seeing a recovery in the area. It is a good time to buy, homes sell for the current market warrants. If you are first time home buyer you may qualify for the $8,000 tax credit which is an incentive, also if you have not owned a home in the past 3 years you may also qualify. There are some serious sellers out there now and know they want to sell they just need to hear an offer. Everyone is negotiating and deals are coming together. Interest rates are still at a historic low.

Probably. Mahopac is far from NYC, jobs are being lost in large numbers, credit is getting tighter and community taxes are not going down. If taxes don't give, home prices have to so unless you think the economy is going to turn around or credit is going to loosen up again soon, home prices will continue falling.

Also, you ask, "is now still a good time to buy?" When, recent, was it a good time to buy? I've been looking in westchester for more than a year now and if we bought a year ago, we'd certainly be down now.