“House prices have to fall more before housing becomes a clear buy again. These markets aren’t as overvalued as they were a year ago or two years ago, but they’re still unfriendly. And that’s one of the reasons the market is still soft — people realize it’s not a bargain.”
— Mark Zandi, chief economist for Moody’s Economy.com, quoted in a NY Times article explaining that in much of the country, including New York,California, Florida and the Southwest, it may be more cost effective to rent than to buy right now.