I would buy a home this year if I could sell my current place at an acceptable loss, because I will not make a profit. But I look at it this way the next property that I buy will also be less because that seller is most likely taking a loss similar to what I would take on my current place to it all kind of evens out a bit. The sad reality is that as a couple my husband and I would not qualify for that rebate in the great tax me more state of MA yet we are just the ones that need to keep moving up the property ladder to keep the market moving. There is no real financial incentive for us to move, it is a matter of time for us to wait for something that makes sense for us not just financially but also for our family. What you need is folks like us to move/sell our townhouse and move up to a single family and have either a younger couple move in as a starter home or an older couple downsizing (hence freeing up SF houses).

(And yes I am a homeowner but technically my husband is not, I bought the place on my own before him so his name is not on the deed or mortgage. So we might had qualified by having his name on the deed and mortgage and not mine. But since the income requirement disqualifies us it is a moot point.)

And quite frankly looking at what is out there on the market, there is not that much inventory out there that would be acceptable to us. I don't mind going with a REO but I require a clean title, and the house to be intact, clean and free from previous occupants.