It has been clear to me for over a year that the housing balloon that we’ve been observing from below was drifting far too close to the sun for comfort. I knew, as did so many analysts, that it would inevitably pop and, like Dr. Seuss’s allegorical Yertle the Turtle, plummet ungracefully into the mud. That day has come and gone, but the frenzy remains as people imagine how much further into the proverbial mud the shreds of this housing fantasy might yet sink.

Too many of those pessimists who believe that the implosion of the housing market still has not reached its conclusion have discounted the viability of real estate completely. However, while we may not find ourselves in a sellers’ market, there is still plenty of profit to be made in real estate if those panicking would simply stop, decompress, and examine the financial terrain.

Although now is one of the most dangerous and least profitable times to try to sell real estate, it is one of the best times in recent memory to seek rental income from one’s current or new properties. The confusion of rampant foreclosures has led to a widespread shortage in housing for those seeking to rent, thus pushing rent prices ever higher. Added to that increase is the backdrop of strong government encouragement for those seeking to buy in the current market and its willingness to continue to suppress interest rates, both of which offer whatever extra nudge that could not be provided by the prospect of high rental earnings.

The opportunity to cash in on this economic trend is now, when the housing squeeze is at its worst and property values have essentially hit bottom, meaning would-be sellers might as well sit tight anyway. I pity those who are so desperate to sell, out of a fear of a coming steeper, irreversible drop in property values, that they will ignore the earnings potential available right now while settling for horrible losses in property sales now.

Buying real estate right now is obviously not going to create profit when turned around for an immediate sale. However, for anyone with a modicum of patience, the market has stabilized sufficiently to begin buying again and immediately begin earning rental income, even while waiting for housing prices to resume their creep upward. I am convinced that now is the time to buy, and those who aren’t personally ready will regret it in the months to come.