Is This The Time To Buy A Home?

Prices of homes in the U.S. continue to fall in nearly every major market and most people believe this is a foolish time to buy. But the more I think about it, as a veteran real estate investor, I'm coming to the opposite conclusion because prices are down sharply from their peak in the 2006 period and rents are holding up reasonably well because we all need to live somewhere, whatever may happen to the U.S. economy.

My son Kyle, a very successful real estate investor and property manager and I have been discussing this and I asked him to pursue investor buying opportunities on his mother's and my behalf. But we know that if we buy, it will be with the intent of retaining the property for the long term. If you should decide to buy dear reader, please consult your local real estate professional and be sure you have the money to afford what you are buying. And remember, I could be wrong on this speculative position.

Here are Kyle's words to me via email:
Dear Dad,

I think that all of the cheap money flooding the market along with prices in many areas at a level that one can make a return on a rental (especially given the 0% return offered for saving), we may not be far from the bottom.  The Fed has primed the pump and we are seeing a better rental market now than we have in the last few years.  The systemic problem with our economy (massive bank risk of default and a consumer driven engine) have not been restructured.  The only good part of this recession was that housing prices have declined massively and many people have lowered their debt levels through refinance and / or foreclosure. I believe that you are right to be looking now.