As of now prices are still sliding, however not nearly as rapidly as they were just a couple years ago. In Suffolk County 19,870 homes sold in 2009 and then 20,214 homes sold in 2010 according to MLS. In Blue Point 23 homes sold in 2009 and then 29 homes sold in 2010 according to MLS. This increase in sales is a good sign that we are moving towards market stabilization - it shows an increase in demand and also helps reduce the over-supply. However, all things considered, I think we're easily looking at a few more years before we see any type of appreciation.
That being said, if I was looking for a home and trying to time the market, I would buy now (or actually a few months ago) for a few reasons. If someone buys a home today and the value decreases slightly, chances are that would make more sense then buying in the future for a slightly lower price, but at a higher interest rate. The cost of a home to a buyer isn't just the price â€“ the cost is the monthly payment added up over time, which is a combination of the price and the interest rate.
Another benefit to buying now instead of waiting is that the selection is greater now. By waiting and buying with less of a selection, there will be fewer choices and so the buyer may end up settling for a home that doesnâ€™t meet their needs as well. Also with the considerable tax benefits of homeownership, even if the value of the home goes down slightly, this may be out-weighed by the money put in oneâ€™s pocket from the tax benefits.