Is now a good time to buy?

It seems like every other day I get asked, "is now a good time to buy or should I wait until the real estate market hits the bottom?" Then I ask, "where is the bottom and how will we know when we get there?" What is the the real question being asked here? I think these people are asking "how do I make sure I don't over-pay when my buy my house?"

Let's consider a few things. Unlike the Dow Jones, which is determined by the collective wisdom of all investors and we can literally follow its every fluctuation in real-time on wireless phone or PDA. At any given time, all investors have the same opportunity to buy or sell a stock at the published price determined by the market.

On the other hand, the real estate "market", as reported in the media, using national, regional or even local averages and trends does not directly determine if you can get a good buy or a deal on your next house. That is determined by how motivated the seller is to sell the house you are interested in.

Two years ago, buyers were losing out on buying the home they wanted because they didn't offer enough OVER asking price in a competitive bidding war. Today, with triple the number of homes on the market

How do we find out how motivated a seller is? Make an offer, an aggressive offer. At any given time, there are sellers that must sell. The home you've have your heart set on may be owned by just such a seller.