If the market slows and house prices decline, there is a big temptation to wait on the sidelines−even if you find a bargain price and great terms on precisely the home you want−until you're certain that prices have reached their bottom for this cycle. Do not heed this temptation unless you're an inveterate gambler.



Remember two things. First, when prices turn, interest rates usually join them on the upswing. A home that had a bargain price and superb financing, therefore, can lose its price advantage nearly overnight. And once the market has truly turned, history tells us it is very unlikely to descend again.



Second, there are a lot of things other than money considerations that go into a purchase decision. If you have found the right home for your own future and the future of those in your household, it usually isn't worth risking the loss of that home over a few hundred dollars−or even a few thousand dollars−that you might have saved if you'd waited until the extraordinarily brief moment when prices and rates were the most favorable to buyers.



This isn't just a financial issue. It's an issue involving how well you live the life of your dreams. Keep those dreams in mind when the price still looks great and the terms and rates are favorable.