read this first

http://news.bbc.co.uk/1/hi/business/7439469.stm

what do you think!?buy or not to buy now?
buy, the price may fall down
not buy, money just flushed down to the toilet by renting

the other news says

http://news.bbc.co.uk/1/hi/business/7433303.stm

I think the major question is really "can I get a mortgage?". The problem with the housing market is not about people cannot afford because of economic downturn or even recession, rather the difficulty of getting mortgages as lenders are tightening their lending creteria to filter out any ricky borrowers to only lend to safest targets.

In my personal opinion, it is actually a good time to up-sizing as long as you can sell your house in the first place. The math is simple, same ratio of price dropping would mean that in absolute term expensive houses will drop more value than cheap houses so properties that were not affordable can become affordable now. I've known a few people around me or my colleagues/friends' friends buying at the moment - and me as well

For first time buyer, it's tough as rent is going to go up because more people are considering staying put for a while. Also do you really think you are the smartest dog to be able to buy in the lowest point? The price has dropped and if the purchase is for the longer term, there are lots of positive factors that may pursuade you to buy, for example the feeling of living in your own home.