Keep an eye on mortgage rates. When they're ticking up, a borrower's purchasing power is headed down.
Weigh the option of buying a distressed property carefully. A bank-owned home or "short sale" property (in which the seller's bank agrees to take a loss) can be a bargain. But getting it can be a long and potentially frustrating process, housing experts say. Self-education and persistence is needed to see it through. Deals can fall apart at the last minute. And the home may need more than the usual share of fix-ups.
Whether you're after a distressed property or not, the low prices and interest rates mean that "there's never been a better time to buy," Mr. Maloney says.
