Question: 

Should I buy now or should I wait until prices come down. 

The correct answer is buy when the timing is right for you instead of trying to time the market.  Here's why. 
Money is cheap today.  Do you feel interest rates are going to go up? 
I also believe the answer is yes, so don't make a decision about buying your home simply based on the price of the home.  Look at several things including interest rates, tax benefits of owning your home and your abilities to make the payments.  Look at the big picture.  Here is an example using basic figures without looking at the complications or benefits of taxes.
1.  You buy a home and have a loan balance of $600,000 at 6%.  Your monthly payment is about $3597.
2.  You wait a few months or a year or two for home prices to decline 5% making the sales price become $570,000 and you pay 7% interest.  Your monthly payment is about $3792.  You're already behind on your monthly payment by $200.
3.  You wait for home prices to decline 10% making the sales price become $540,000 and you pay 7%.  Your monthly payment is about $3592...almost where you would be today.
How much did you pay in rent in the meantime and what were the tax benefits that you missed out on?

Sharon L Holmes

PARADISE PROPERTIES OF FLORIDA INC.

REALTOR / SALE ASSOCIATE