When is the real estate market going to hit bottom or bottom out? That's the million dollar question. The answer is going to vary by market and quite frankly, from house to house. Buyers and sellers are in control of when the market hits bottom.
Currently, in the Atlanta market there are so many vacant houses. When the market was "hot", sellers were purchasing new homes before selling their old homes and investors were snatching up properties in hopes of flipping them. In many cases, sellers are now carrying two mortgages and investors have more than likely exceeded the grace period allowed by their mortgage companies. If a house has been vacant for a long time, a buyer can probably get a good bargain.
Builders are offering unheard of incentives and price reductions to sell their standing inventory. I recently had an encounter where a builder dropped the price by nearly $300,000 if the buyer closes by 12/31/07. Some builders are offering thousands of dollars in upgrades, finished basements and even to make mortgage payments to get their homes sold! If a new construction home does not have a feature you want, ask for it. The same is true if the home has something you don't like (such as flooring, light fixtures, plumbing fixtures, etc) ask to have it changed.
Buyers in today's market should not delay making an offer on a house they really like if their only reason for hesitating is because they are waiting for the market to hit bottom. Each buyer can create his own bottom. The bottom for any given house is going to be determined by the buyer and the seller. The buyer has to determine how much he is willing to pay for a house and the seller has to determine how much below the list price he is willing or can afford to accept. Hopefully, they can come to an agreement. Buyers should not wait for sellers to lower their prices, go ahead, make an offer! Mortgage rates are still low and contrary to popular belief, there are still some good mortgage programs available.