The Housing Bubble

My wife pointed me to this article at IndyStar.Com regarding the housing bubble. Since I haven’t purchased a home yet, I’m learily expecting that even with interest rates so great, that I should hold off even longer. Suze Orman warns that 23 percent of houses purchased last year were for investment purposes. That’s a scary statistic. I think I’m going to hold off for now and give myself an opportunity to improve my credit score and create a substantial down payment, hopefully offsetting anything that I’d be losing by waiting until interest rates increase.

3 thoughts on “The Housing Bubble

  1. This is probably a good idea if you live in an overheated market. If you’re confident that prices will deflate when rates rise, you can wait and buy then. Yes, you’ll be buying at a high interest rate, but you can always refinance when rates fall again. But your purchase price is your purchase price, and you can never improve on it once you sign on the dotted line.

    fivecentnickel.com

  2. That’s the hard part. I’m in Dallas and it has major plans for renovation of the Trinity River area. The state of Texas also has a forecasted increase in population of 30% over the next 10 year or so. I’m not really sure about the price of homes decreasing much here.

  3. As i mentioned a couple posts back in my blog, I’m also waiting so I can have a larger down payment. Hopefully, you’ll have a better market than the Boston one.

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