Real estate is all about the buyers. Seller's might think they are setting the price but the price is determined by what the market (a buyer) is willing to pay for a property. Obviously all the public dismantling of Wall Street has clearly shaken confidence in both buyers and sellers. Yet if you have money and need a place to live, stop putting it in someone else's pocket by renting and buy something. Buy something you love and that makes you happy. Find a seller who needs to sell and make an offer that you will be comfortable with. Buy because you need the tax deduction or you are losing money in the stock market and would rather have a piece of real estate. Buy while the interest rates are still low. But before you buy, your confidence has to consist of 3 things - job security, affordability and value.
Great news -
The entire United States Federal Government is committed to liquidity in the mortgage market. If there ever has been a time to buy, it is now. With a 700 billion dollar bail out and a financial sector being totally re-invented, people in the financial sector are not pressuring prices up and in fact there is much more room to negotiate. If the present conditions frighten you and you think at times it is almost overwhelming remember that America in 1940 was at war in 2 separate places, in Europe and Asia, now if America was able to get out of that situation, the current situation pales in comparison. Don't lose faith in America, anyone who sells the American economy short doesn't fully understand just how intricate and complex our entire economic system is. Buy now, enjoy it and sell later for a nice big profit.