Home ownership is a highly leveraged real estate investment that can yield substantial profit with a nominal front-end investment. However, these returns depend on buying into the real estate market at the right time, holding for the right period of time, and reaping the subsequent home-price appreciation. As for evaluating the risk associated with home ownership, David T. Schumacher and Erik Page Bucy write in their book "The Buy & Hold Real Estate Strategy," John Wiley & Sons, New York; 1992, that "good property located in growth areas should be regarded as an investment in real estate as opposed to a speculation or gamble."
So, when is the best time to buy to buy into your local real estate market? That answer depends on you, your goals, your financial situation, and your peace of mind.
Because many buyers prefer to move in the spring or summer, the market starts to heat up as early as February. Families with children are anxious to buy so they can move during summer vacation, before the new school year begins. The market slows down in late summer before picking up again briefly in the fall. November and December have traditionally been slow months, although some astute buyers look for bargains during this period either from banks who need to liquidate before the year's end, or homeowners who are in a crunch and need relief.
While a typical buyer may look at five to 10 homes before making an offer, an investor who is actively investing will usually go through many more. Most experts agree it takes a lot of evaluation and homework to find a real "bargain." There are a number of ways to buy a bargain property:
* Use our accredited online real estate search engine to help you locate and evaluate currently available Below-Value properties.
* Buy a fixer-upper in a transitional neighborhood, improve it and keep it or resell at a higher price.
* Buy a foreclosure property (after doing your research carefully).
* Buy a house due to be torn down and move it to a new lot.
* Buy a partial interest in a piece of real estate, such as part of a tenants-in-common partnership.
* Buy a leftover house in a new-home development.
The overall cost of your home is made up of two components, principal (the price of the home) and interest. Getting a low price on a home, but paying a high interest rate can easily cost you more than paying a higher price for a home while interest rates are low. Let's take a look at these two version of the same home:

Home is bought at $250,000 in late 2008 at an interest rate of 6% for 30 years. The total cost of this home at the end of the 30 years is:  $539,600.

The same Buyer waits until 2009 to Buy the same home, which the asking price has been reduced to $220,000. The Buyer secures an interest rate of 7.5% which has risen due to the Fed's recent determination of the negative effects of infalation. The total cost of this home at the end of 30 years is: $553,800.

The price activity of your home while you own it has no effect on the cost. If you plan to own the home for 5 years then you are more concerned with what the home will be worth at that time, and how much you will still owe on it then. The current market provides great values for an investor or buyer who is READY, WILLING AND ABLE to invest in real estate and take advantage of these deals. The general consensus in the market is that real estate prices will find a bottom some time in late 2008 or 2009. After which prices will begin a slow rise. 

Because of the tax advantages of owning a home, ownership is usually more benficial than renting, as long as you can afford the payments. Take a good look at your individual options and the advantages that ownership would provide you as opposed to renting. Surround yourself with professionals who will help you make the right decision.
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