First-time home buyers waste time and money waiting for the bottom

33-year old renter Victor De Rossi tells The Associated Press that while he's looking for a home, there's no real sense of urgency: "We're just driving around, just starting the process. If I don't find the right house, we'll just rent another year." He adds that the new $8,000 tax credit for first-time homebuyers won't factor into his decision. But, if someone offer you $8,000 to do something now instead of waiting, how could possibly not factor that into your decision?

Many potential home buyers are still waiting on the sidelines but for first-time home buyers who are ready to buy, it just doesn't make any sense to wait for the market to fall more in most places. Here's why: