Is it a good time to buy a home?
According to case shiller index, we are still 20% above long term averages. Typical bottom comes at 20% below average. But this is not your typical recession. This is a deflationary crash. This is Great Depression material. These averages themselves are based on a money supply that was inflated by borrowing for many decades. When the money supply deflates, existing prices and salaries cannot be sustained. We are following the foot steps of Great Depression. Stock market just turned down at exact 61.8% retracement rally and we have grim stock market prediction for 2010:
http://www.tradingstocks.net/html/latest_opinion.html
If Great Depression repeats, DOW is going to be 400. Then all this talk about under valued / over valued cities will not mean a thing. Beware! It has happened to past generations. Do not think we are immune. Today the debt problem is much much bigger than the days of Great Depression.
Glenn Beck explains the exuberant home prices we are still trying to sustain via government subsidies:
http://www.tradingstocks.net/html/housing_market_bubble_bust_cyc.html