Based on estimates by Moody´s Economy.com, it is believed that home prices will finally stop lowering at the end of this year. They are estimating that median prices will fall about 10% more over the 27% they have already dropped since the boom of prices was seen in 2006. Of course, these predictions are all based on the hope that President Obama´s efforts to help the economy will work: billions being spent to halt foreclosures, enormous bank lending, and tax credit to 2009 buyers who have not owned a home in the previous three years. If these efforts fail, Moody´s new prediction for the halt would be 2011, if even then. If this happens, Mike Larson, a real estate analyst for Weiss Research, says that "The recovery will look more like a U than a V,", in other words the prices will stay low for awhile while the economy recovers and then slowly increase.

If you are looking to buy a home, take some time to research the areas you are looking at; how are the prices doing? It is not wise to buy a home in an area where the prices are drastically falling, buying cheap is good but you have to think of the home´s estimated value once it is yours. As far as price, when buying make sure to bid at least 10% less then the home´s current market value as again the price fall will not stop for awhile and you do not want to put out only to have the home worth lower right after. If price is your final object, what it will cost you now and not the CMA, then go for foreclosures and short sales. Foreclosures normally go for 20-30% less then the current market value. However, with foreclosures as they may be in pretty bad shape, get an estimate of the time and repairs you would have to put in. Short sales, can also save you about 10% as the bank wants to get a deal and get the property of their books. The only problem here is that sometimes it can take awhile to close, up to six months, and it could fall through. Glenn Kelman, the CEO of Redfin, says "If foreclosure is 30 to 40 days away, it's very unlikely that the short sale will happen first,".

As far as mortgages, at this point it normally takes 45-60 days to get approved for a loan, and for a good rate a credit score of 720+ and about 20% cash down is needed. To get approved, all of your outgoing payments for loans, should not be more then 43% of your pretax income, with insurance, monthly mortgages, and taxes being less then 31%.

For the sellers out there, instead of looking at list prices, go for the sold price of homes in your area that are similar to yours. Make sure to only look at those figures for the past three months, as Ellen Klien a Realtor in New Jersey, says "Even six months ago the market was totally different,". For those homes that are on the estimated list of areas where price values will drastically fall in the next 12 months, then start doing all you can to sell now. If your home does not sell in 30 days, some good tips are to lower the asking price. Klein, says the best bet is lowering the price to 10% below then those similar sold homes. Doing this will help draw in more potential buyers, which due to competition will raise your price again. To help boost your value and sell quicker, you can make repairs, give a nice commission to buyers agents, which makes them more motivated to show it, and perhaps have a flexible closing date. A flexible closing date will also help as it is more convenient to the buyers´ needs.