Interesting how almost all realtors always say "now is the time to buy," even at or near the peak of the market. Would the most honest realtor step forward and say when it is NOT the time to buy? Then again, if no one buys there is no commission. I thought there were ethics as part of real estate licensing. What am I missing here?
My guess is that as the bubble continues unwinding and more adjustable rate mortgages reset higher, this will make it harder for those that already bought to hold onto their homes, sending more supply into the market as they get foreclosed. This increased supply of course lowers the price of housing stock. Not to mention what happens to housing prices once interest rates in general go up as the Fed raises rates. This too will make housing less affordable and put further downward pressure on housing. So maybe we bottom a few years from now. So for a BUYERS perspective it would seem 2012 or after might be the "best time" to buy. For a realtor, naturally the best time to buy is NOW so the realtor can get their commission today - not postpone it years down the road when it would save the buyer tens of thousands. Furthermore, assuming the commission is at a fixed rate, say 3-6%, its in the realtors interest to get buyers to pay more for a house today than for the buyer to pay less after housing bottoms as this would also cut the base amount from which the realtors commission is calculated.
If I am wrong on this, educate me.