The banks aren't lending money because housing prices continue to fall. People are more likely to default when they overpay for a house so they are tightening the loans. The banks will only lend to people who will have a lot of equity in the property. Unfortunately the only people who will be able to purchase property will be pulling money from their current property, and that equity is evaporating also because the market is going down. It is a vicious cycle. The time to buy is now because they are still lending money. If you wait for the market to bottom out, you will not be able to get a loan.