Now, more than ever, it's important to consider why you're buying a home. Nobody knows exactly when the market is going to heal and what the market is going to look like once it does. Expert economists have differing opinions about what the proposed $750 trillion bailout will do to our economy - short term and long term. (and given our government's track record in economics, we can expect some unintended consequences as well.)
Because the Phoenix market is different from the national market, and because every neighborhood within the Phoenix market is different from the next, it's very difficult to make blanket statements about the future.
Are you going to live in the home for a decade (or longer)? Or is a relocation in a few years a distinct possibility? Are you willing to take a risk on getting a great deal on a bank-owned home? Or would you rather rent until things settle down? What would you do if prices fall another 5%? 10%? 20%? How would you feel if your home is worth the same as what you paid for it in 1 year? 2 years? 3 years? What about if you decide to rent & miss the market's bottom?
There's no right or wrong answer, per se. Each individual &/or family must make their own decisions. I encourage you to ask yourself these difficult questions. And you're always welcome to shoot me a call/email if you want somebody to brainstorm with.
Your campaigning for normalcy in 2009 Realtor,