BY LINDA STERN, REUTERS

If you want to buy a home and can afford the payments, don't worry so much about the macro-economic forecast for housing.Photograph by: Steve Bosch, Vancouver Sun
Buying or selling a home might be the biggest single financial transaction of your life. You want to get it right, but how do you do that at a time when even the professionals don't fully understand what's going on in the housing market?

Is it a good time to buy a home or sell a home? Here are some thoughts about how to approach the housing market now:

Don't rush. Probably the one housing market observation that everyone agrees on is this: it's not going to take off in a hurry. Analysts expect it to be several years before home prices return to the levels they reached in 2007.

And they don't expect mortgage rates to skyrocket, either.

Research your own market. Some areas still seem to be in free fall, with high foreclosures and no real recovery in sight. Other areas that weren't so bubbly in the first place have been doing all right. Check with local real estate agents to see what's actually happening in your neighbourhood.

Expect prices to fall further. There's a disconnect between what sellers think their homes are worth and what buyers are willing to pay, according to a new survey from HomeGain in the U.S. About 80 per cent of homeowners believe their homes are worth more than the recommended agent listing price, and 70 per cent of agents and brokers think homes are overpriced. The situation isn't very different on Vancouver Island. If owners really want to sell their home, they'll drop the price to a level that will attract offers; it's rarely worth carrying a home for months or years while you wait for the price to get to your desired level. That means that homebuyers may find some better deals ahead.

Plan a seasonal approach. If you need to sell now, price your house low enough to engage a buyer before December. If you want to sell in spring on Vancouver Island, line up your agent soon after the New Year.

If you're buying, start looking now, but expect that by winter you may get even more for your money.

Keep it about your own budget. If you want to buy a home and can afford the payments, don't worry so much about the macro-economic forecast for housing.

Keep maintenance in mind. The recession has dampened the market for contractors and for energy commodities. Once the economic recovery strengthens, you can expect to pay a lot more for any repair work your home requires, and for your heating and cooling bills. Look for the lot and the house that will fit your family, but keep an eye on those practical considerations, too.

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