We stopped by an open house in our neighborhood. The real estate agent said that it was a good time to buy for those that were first time home buyers and for those moving to a larger house. 1st time home buyers were obvious. They would not need to sell their home in a slower economy but the buyers that were upgrading, I was surprised.
It appears to me that many people buying homes currently will need to stay in them for awhile to see any profit. For those selling homes right now they might not see any profit if they purchased the home recently.
Many homes have inflated prices right now. The homes are still coming down in price. The real estate agent's comments were very alluring to upgrade now. She thought that the people that would be losing money would be the people that were not going to re buy. She might be right that it is a good time to buy regardless of your situation. Only time will tell.