I would be in the market if I had any faith in economic recovery. I have cash for downpayment, stable job, good credit rating. But I don’t think the real estate market has hit bottom and I don’t want to end up like so many others who are underwater. Even the 8K in ‘free money’ isn’t enough to move me. I came very close to buying a condo last winter. Since then the prices have gone down 20%. I’m so glad I got cold feet.
Understand, the First Time Home Buyer’s Tax Credit is NOT a flat $8,000 per home bought. It is 10% of the cost of the home. In order to get the $8,000, you have to buy a home that is selling for $800,000. Still, 10% is better than nothing.