I've been thinking about buying a home, but am being bitten by the deflation bug I've written so much about, and who wouldn't? With all of the talk about banks lowering existing mortgage principle, millions of additional foreclosures in 2009 and new housing starts lows, it seems intuitive to wait until at least the 2nd half of next year to make a decision.
What worries me about buying now is:
1. Buying at too high a price and losing significant value on my property because of surrounding property principle reductions.
2. Buying into a community with huge foreclosure interest that hasn't been realized yet.
3. Missing out on one of the sure to be infinite number of programs that both private institutions like banks and homebuilders and the government will put into place to entice first time homeowners. It would really suck to buy a house in March only to have record low interest rates or rebates introduced in June.
