I still think real estate is going to go down some more before it is going to go up. There are still tons of foreclosures out there. If I were going to make an offer on a house it would not be for full asking price. Those days are gone for now. I am sure those days will come back, but not right now. There are way too many homes on the market to just settle on the first one you see and like. My advice is to not fall in love with the house until they accept you offer and be willing to walk away. You might have to make 5-10 offers before you get the one at the price you want. In this market it is all about patience and finding a great deal. In the end you will get the most out of your money and long term investment.