Bail out gone south!

I have so many people trying to get me to tell them what this market is going to do after the bail out failed. There are a few different things going on that we need to take into consideration. One is no one knows the future except GOD and he is most likely not going to tell us. The other one is my response or someone else's response is only an opinion and can not be taken literally. It is only what we think is going to happen and it has no direct bearing on the way the market will actually go. Now that we got that out of the way let me give you my opinion. What I feel is that the government is buying up these loans from the banks for pennies on the dollar, which allows the banks to turn around and lend more money to consumers who want to purchase homes. If the government buys all these home loans from the bank is that going to drive down or push up the prices. I do believe we are in a financial crisis and I do not think the government is going to give these homes away. Not to mention the fact of supply and demand, if the banks are ruining out of money to lend out for people to buy interest rates are going to go through the roof. So you may be right on prices coming down a little but the likely hood of getting qualified to buy or even at an interest you are willing to pay will become the new question. That brings me to what i think about the market, I think now is still a great time to buy. You do not want to be competing on buying homes in a market that has bottomed out. The competition will be so strong it will drive up prices on the homes you are interested in. If the interest rates are going to go up over the next few years in one way or the other it is still going to add to the expenses of buying and owning a home. The best thing to do is trust your instincts and find a realtor you can trust, make an educated decision and move forward. It is better to look back and say we could of got a little better of a deal than looking back saying we should have done something.