You have no doubt heard of the fiasco going on with Florida real estate

because of America’s financial crisis. Of all the industries getting hit, real estate has taken a nasty fall. After all, this is an industry built on the concept of feeling safe and secure. The idea that residents could lose their home or mortgage has people running scared—and running back to renting. The national average is that prices are down about 40% at this time. Even in Southern California (where it never rains) home sales prices are down 30% from their peak, which is the worst it’s been since the 1990s. Florida real estate is down about 35%, New York real estate is down over 40%!

Paying less for a home

should be less of a burden, right? However, the real estate industry hurts most when prices are down. So that leads us to the question: should you buy a house now, when prices are so dangerously low?

There are two points of view to consider

First, that everyone is running scared and the answer is no no no. Millions have already beaten you to it and are partly responsible for real estate’s downward spiral. The same people are telling you that things are going to get worse before they get better. They’re also warning you that if you buy now, you will regret it, as prices may continue to fall in coming months.

There’s another perspective to consider

First, the view is that prices are becoming so low that even renters who would ordinarily not consider owning a home could afford to make that move so they can start building equity. Secondly, there is sincere optimism floating around from Washington and it’s just starting to hit New York, Miami, California, Chicago and every other important financial state. President Obama has stated that the government is developing a subsidizing program that will help potential homeowners should they fall behind.

Billionaire Warren Buffet

who is making headlines by selectively investing money in the recession (most recently Harley-Davidson) once said: “Be scared when everybody is greedy and be greedy when everybody is scared.” Now that’s some billion dollar advice.