I think so. I am not trying to time the market bottom for real estate. I don’t think any one can time the market top or market bottom. Based on what we are going thru today, it appears that buying a house is not a bad idea.

However, it’s not for every one. First of all, you should have steady income and stable job or business. Second, do not try to buy houses or apartments in areas like San Francisco bay area where the prices haven’t gone down much.

If you have a good feeling about your job or business, it’s better to buy a house rather than renting it. In the wild-wild-2006, you can get the loan with 0% down. Not any more. You should be able to make at least 20% down payment. If you put down less than 20%, it’s harder to get good mortgage rates. You will also need to pay for private mortgage insurance (PMI) in that case. PMI is bad, very bad.

Mortgage rates are hovering around 5.42% for 30 year fixed mortgage and 5.15% for 15 year fixed mortgage. If you can afford it, it’s better to go for 15 year fixed mortgage. The rates are higher for jumbo loans. Do not get adjustable rate mortgage (ARM) at this point of zero percent economy. (When the interest rates go up, you will need to pay more interest in ARM).

Home buyer tax credit of $15,000 approved by Senate also would also help the home buyers now. Buyers would get 10 percent of the purchase price of any home, up to $15,000, applied to their tax bill. Consumers would be allowed to spread out the credit over two years, making it possible for those who pay less than $15,000 in taxes to benefit. Anyone who buys a home within a year of the bill’s signature would qualify. Please note that buyers must occupy the house as their main residence for at least two years. This provision is in place to discourage the speculators and house-flippers.