Well the prices took off a little under 2 years ago and they followed the reverse trend of the interest rates. Those that chose ARM loans were hurt the most. There is an over-abundance of homes in my area, so much that builders are downsizing their projects or offer huge breaks. The time to buy is NOT now. In six months, those who put their homes on the market during the past 4 months will have to lower their asking price by 10, 20, 25% even. Those who will benefit are buyers who want a permanent home; a lot of the homes during the rush were bought by speculators eager to flip homes for profit. But hey, we do the same for domains :-D