The information we are hearing is that from a national perspective prices will continue to slip another 10% during 2009. Of course, this depends on the area and the price declines that have already occurred. The inventory of available homes supports this theory with the number of homes on the market reaching 2M.
This does not mean you should not consider you buying options at this time. there are many, many excellent buying opportunities. Our advice to this question is for buyers to remain active in the buyer's market, colllecting information, and looking for the perfect opportunity. The perfect home, in the ideal community, and offered at a price you can't afford to pass up. The real challenge is identifying the truly motivated seller. Many of today's buyers are finding satisfying opportunities with "bank owned" property.
Our advice to you is to remain in the hunt, continuing to collect information of possible options and being prepared to move quickly on the right opportunity. The best deals are currently going to the people that are in the right place at the right time and are ready to take action. Be sure you have a letter of pre-approval for financing and have the support of a real estate professional.
Yes you have to pay PMI with less than 20% down but in my mind its a bit of a trade off assuming prices will eventually recover and once that happens then interest rates would probably rise as well. When that will happen nobody knows.
And also you stop paying PMI once the value of your home is at least 20% above what is owed ( either by paying down the mortgage or by getting a market analysis from a realtor showing the current value)
The only thing you must not do is buy anything with the assumption that you will make a profit on a resale.
I like Cambridge Heights walk to the city bus and the train or for that matter a few blocks from Rte 3.
As for where the market is going it would be an extremely brave person who would ofrecast the trend in the coming year. There are a number of factors against a recovery but assuming interest rates will go even lower and assuming such things as low downpayments will encourage first time buyers (along with the tax credit and any other incentives that come along) we should see a pickup in demand in the lower end of the market.
Going against this is the very large inventory of properties for sale and this will have to be reduced before there is any sign of prices going back up.