There are some really good arguments for the benefit of purchasing property NOW, instead of waiting for the possibility that prices might drop even lower. Firstly, this is not a good time to be a renter. With less renters deciding to buy and the amount of foreclosures flooding the market, demand for rental homes has gone up. Along with the fact that there has been less new construction since the overall financial crisis, rental prices have been rising and are expected to increase an average of 5% more over the coming year.
Secondly, chances are the decrease in home prices is probably over and there is no indication that prices will soar in the very near future. It looks like there is a potential for a major stabilization in home prices. Thirdly, with mortgage rates being at an all-time low, it would be dangerous to assume they will go lower or even stay the same. It is predicted that in 2012 rates will increase up to a full percent higher than they are now.