Volatile Market, declining prices, foreclosures = A good time to buy?

Whether it's a good time to buy is obviously a personal decision, and depends on your reasons for buying, location and available funds, amongst many other factors. As a general rule, however, I personally tend to think that merely looking at prices and saying 'holy shit they're low now, what a deal' is virtually always a terrible reason to buy anything. An object in motion tends to remain in motion, and a trend in prices, by definition, is more likely to continue than to change.

What I mean is, just because the price is at a historical low doesn't mean that it's at the bottom. There's a reason why the price got so low. Is the reason still valid? If you think that it is, then assume that the price will go even lower. If you think that it isn't, and some new circumstances have arisen that have the force to change the trend, then wait for confirmation in the form actual rising prices before just assuming anything. Trying to call a bottom in the market is very rarely a good idea.

Jam it back in, in the dark.