Earlier I wrote an article cautioning about buying a home in an area where prices are falling.

That is not to say “don’t buy”, but rather, “don’t buy in the wrong place at the wrong time”. However, today I have a different thought in mind. And that is to encourage you to consider buying in the right place at the right time.

Along with the demise of financial markets, real estate prices have plummeted. Institutions that out-survived Bear Stearns, Lehman Brothers, WAMU, Fannie Mae, and many others gone the way of the dinosaur, are now holding mortgages they are not so confident about. And there are plenty of “home owners” who are now selling their homes because they want to try to get rid of them before they get foreclosed upon. This all adds up to… cheap home prices.

A recent report on the California housing market said that homes in California that were valued at $500,000 earlier in 2008, are now being listed for half of that value.

Just because something is a good deal, does not mean you should buy it though. That is, if you can’t afford it, then you should not be playing the game. However, if you are in the market for a house and have the means to make your payments and meet all of your other obligations, then this might be an excellent time to jump into the current housing market and make a purchase or investment. Just don’t go spend your milk money. And be prepared for months – or years – to go by before this housing market turns around. But also be prepared to see your acquisition rise in value.

Remember, buy low, sell high. And like they always say, what goes down, must go up – or something to that effect.