Is now the time to buy?

Looking at the recent headlines in real estate, it's easy to get confused whether now is the time to make a purchase in the Toronto market.

With prices slipping, the housing market in a "correction", the new renovation tax credit and low interest rates, proponents are saying now's the perfect time for new buyers to enter the market, or for existing homeowners to upgrade — so long as you plan to hold on to the property for a little while.

Others say prospective buyers should hold off, as the market has further to fall, with many predictions forecasting the beginning of a rebound in 2010.

And, the other side argues that with all the current economic uncertainty, it is a shaky time to enter the market and people should hold off for more stability.

Meanwhile, housing starts fell in January and the city has plans to bump taxes for homeowners by four per cent.

What do you think? Should renters like myself be pumping up that down payment fund? What advice would you offer to new buyers?

Read more on this topic:
Canadian new home prices slip again
The take on the tax hike
Homeowners face 4% tax hike
Loss of confidence swamps housing market
Housing starts down 11 per cent in January
New tax credit for home improvements