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Many people "sellers" believe waiting to sell means that by waiting their home value will come back, well let's look at that logic constructively.

First, many sellers sell to buy. So if their home goes up so will the cost of the home they would purchase, and if you are buying a more expensive home you realistically will spend more than you made waiting as a higher priced home will rise higher than a lower priced home in the same areas.

Second, the cost of waiting to buy later may have a higher interest rate attached to the loan you get to buy, and any rise in interest rates cuts into the affordability of the home via its monthly payment, and just think of the extra interest you'll pay over the life of the loan. This costs you more.

Thirdly, recovery of home values will be mostly tied into a four letter word JOBS. Employment has to recover first in order for suppy and demand to get any form of traction on the demand side.

Lastly, but certainly not the least. All prices in the future, rent, mortgage payment amounts, home values, and everything else your wanting to buy will be tied exclusively to income period. If your income is only X than you can only buy what X can pay for. In other words, back to your home value. A double household income and its earnings are closely tied to a reasonable commute for both earners. They then will own or buy within the market of that earnings radius. Therefore, if incomes don't rise much or at all, nor will the things income will buy.... So it is very likely our prices will go sideways for some time to come, so get on with your life, let go to grow, and at least take advantage of cheap mortgage money.....

                                       Jeff Hedberg

                                       President, Real Estate Masters of America, Inc.