This is a very interesting chart from Paul Kasriel (via Barry Ritholtz) showing the relative cost of owning versus renting a home today. For the first time in a long time it costs significantly more to rent a home than to buy one.
The fact that mortgage rates are now at an all-time low is a key factor that makes owning look so attractive right now. On an absolute basis, however, home prices aren’t as cheap as this chart suggests. Still, this may not be THE bottom but it is hard to argue that it is not a great time to buy.