I love this questionâ€¦ the history from this conversation circa 2008 pretty much says it all!
In 2008 - probably not your best move to purchaseâ€¦ a little too soon. Easy to say from a historical perspective, I know - but humor me. Fast forward to 2013 and we can see that we have, for all intents and purposes, hit the bottom and have bounced back up. A little. A little more in some areas than in others. Now we have new problems. For the entry level buyer hoping to find a home with less than 20% down, or those who do have 20%â€¦but not a whole lot more - it's pretty slim pickins' out there. Multiple offers from all cash buyers are trumping most bidding wars. So who is to say that those who bought, on somewhat easier terms in 2008 won't, in the long run, be better off than the buyers being frozen out of today's market until the prices rise again, sufficiently enough to knock the all cash deals out of the running? Real estate is cyclical - and there is always a "catch" of some kind. Especially here in Southern California.
Good luck out there!