They also predict the market to stabilize in late 2008 to early 2009. Following a stabilization, prices will be on a very very slow upswing for several years.
One thing you will need to consider is interest rates. If they continue to go up, the amount you can afford goes down. You need to look at the whole picture when buying.
this one of those questions that we all want the answer to but no one can say for sure. It will take awhile to see the results of the artificial correction (sub prime freezes). This may lessen the potential homes that may have gone on the market as foreclosures/short sales and/or bank owned. But, only time will tell if and when the numbers of those who are buying will increase to the point where there is more of a demand for homes than the supply.
On the flip side this a great time for first time homebuyers and move uppers. I am glad to say that I work with first time homebuyers in the inland empire with very conservative budgets and there are a lot of properties to choose from.
In the Mira Loma are there are definitely a lot of homes, communities and cities of choice, corona, norco, chino, riverside, lake elsinore, etc. There is quite a bit of new construction going on also and it seems that the tri-level condo/townhome areas are really increasing.
The bottom line is Jennifer, we really don't know if the market will start to swing in the other direction in two years, but we do know that there are a lot of properties out there within a first time homebuyers budget that are in new or move upper areas.
These are the time that serious buyers are out there. If you need help in reference to consultation and your timeline let me know, I'd be glad to assist.
No one has the crystal ball what home prices will do, nor when values will begin to return, nor how fast or slow.
Diffferent areas of the country will rebound at different speeds.
One thing certain is values in most all areas have corrected off their market highs.
Since you and your husband are planning to purchase your home in the future. Your best hedge against the rebound is to purchase as soon as you financially can.
Best of luck in your new home.
Most economists are not predicting sky rocketing prices in the near future. Since I am not in your market, I could not comment specifically.