Quote:
Originally Posted by Barefootsies
True.
However for my market, I have been spending the weekend's cruising neighborhoods, and I see the prices falling like a boulder in some of them. They are roughly $20-30k still over where they should be (except lake front which is still insane but falling) but they are coming down.
By the end of the summer there should be some sweet deals for me to snag up.
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Yeah if you know what to look for and are patient you can make a killing.
It's all about the fundamentals. If it's significantly cheaper to rent in your area than it is to buy, then the house prices are too high (or the rents are too low and will be raised soon)
If the average house in your area is 500K and the average family income is 50K, then there's a bubble waiting to pop.
People who understand the fundamentals got out of alot of their real estate holdings during the recent run up, and are waiting like vultures to pounce on the bankrupt speculators once the bubble pops.
Same thing with stock market fundamentals. Some people were smart enough to know that the S&P 500 wasn't going to keep trading at 30 times earnings, and the NASDAQ wasn't going to trade at infinity times earnings, and they got out well before the bottom came out.
Kind of got off track here but bottom line is unless the market you live in is FUBAR at the moment, owning is superior to renting in almost every way.