3. Prices are trending back up

Every major price index is pointing to a housing market that has hit bottom and it's moving in a positive direction. After 30 months of declining values, prices appear to be stable or appreciating in nearly every U.S. market. In August of 2010, the median home price was $182,600, amounting to an 11 percent increase over the low that was reached in February of 2010 that was $164,000.

Standard and Poor's Case-Shiller index reported during the first week of September that the home prices were up in 15 of the top metropolitan areas, amounting to a nation wide gain of 4.2 percent over this same time last year.

In other words, staying on the fense and waiting for prices to drop further is over.