I read a great article in the New York Times on Friday. I don't typically read this paper, but every once in a while I find it and grab a copy. The writing is exceptional and I love the Op-Ed section. I am a big fan of David Brooks. He wrote an interesting article on Friday entitled "Stimulus for Skeptics." The basic gist of the article is that "bank-crises recessions are worse than normal recessions." The conclusion drawn is that we are going to be in this slumping economy for awhile and we should start looking toward long-term solutions, not the quick fix (i.e. - proposals currently being offered by the President and Congress). That is a not a very popular idea and it certainly won't get you re-elected, but I think David is correct.
So what conclusions can be drawn for the housing Market in all of this? Simply put, take a long-term view. If you don't have to move, don't. Everyone knows it is not a great market for sellers. If you choose to move, then you should be prepared to take a hit on the selling end and make up for it on the buying end. That is it in a nutshell. Too many sellers are not taking a realistic view on the sale of their home and that just adds to the problem. It adds one more unsellable house to the market. Be a part of the solution and not the problem.
One more thought: Don't succumb to Fear! No matter how hard things get, the housing market will recover. History proves this to be true. The best advice I can give is the one I give my kids when they run into challenges...Don't be afraid to ask for help.