"We have to remember that anything less than 7 percent is a great, affordable rate," says Mike Ruzicka, president of the Greater Milwaukee Association of Realtors. "Plus the federal government has been very involved in trying to ensure credit liquidity, including the takeover of Fannie Mae and Freddie Mac."

"Don’t believe media reports that you need 20 percent down, either," says Mark Steele, senior mortgage consultant with Johnson Bank, Franklin. "You can still get a construction loan for 5 percent down." Steele says the real, important issue to be aware of is "credit score pricing." Before 2007, as long as your credit score was 620 or higher, you could enjoy the same interest rate as those with 720. "Today, buyers will pay a premium for a lower credit score," Steele cautions. "So know your credit score — and understand that if it is between 720 and 740, you’re going to get the best interest rate."

Foreclosure rates are a perfect example of how national news does not apply locally. Wisconsin is in great shape; at a rate of only 1 percent, the housing market here boasts one of the lowest ones in the United States, according to the Metropolitan Builders Association.

"Those who buy now will have a home they can call their own and reap the long-term gains of home price appreciation instead of missing out," says Chellee Siewert, executive director of the MBA. She points to buyers who purchased homes in the early 1990s during the last economic and housing downturn — and came out as big winners. "The median price of a new home in 1991 was $120,000. In July 2007, it was $239,500 — nearly double in price," she says. "Buyers who embrace the advantage of today’s current market conditions can expect to garner similar benefits in the investment of a new home."

Lot prices have dropped, too. "Today a lot that went for $150,000 three years ago is down to $110,000," Steele says. And if potential buyers are still holding out for lower interest rates, since home prices don’t follow the same trends, it’s important to understand the math over the long run. If a home price drops $10,000 at today’s price, but the interest rate goes up a mere 1/2 percent, ultimately you lose money. The bottom line is that the total dollar amount of a higher monthly payment over the term of the loan is going to be much greater than the up-front savings of the reduced home price.

"Currently the higher-end market remains stable and active," Siewert points out. "The challenge I’m hearing from builders is at midrange price points as buyers are waiting to sell existing homes." Builders are offering incentives, too, and report that even despite an especially rough winter at the start of 2008, model home traffic was on the rise this past year.

"Builders are being very responsive and we’re seeing some cost-cutting and room for negotiating," Steele agrees. "I see things turning around even more by mid to late 2009. It’s still a great time to build."

"While it appears we may be in a recession, it’s usually the one industry than leads us out of a recession," Ruzicka says. "I think we are poised to do just that in southeastern Wisconsin in the near term." m