This article says: "Numerous factors determine whether prices are in line with what people can afford and are willing to pay. These include job and household growth, inventory levels, rents, in-migration from other areas, land costs, new-home supply and discounts being offered on them, and the age of the housing stock." These factors may change suddenly, i.e., the Enron scandal, or not. Also, psychological factors about where you want to live and why weigh in strongly.
So if you plan to live in an area for two-plus years, and you can afford that area, you're better off buying, especially with present interest rates. Even though many people were hurt in the 1990's recession, those who could stay put for 7-8 years were able to ride it out. Not even the best predictors know when the market will actually turn--we've been hearing that interest rates will rise for a long time now, but they've held to the same levels. Read here for this Wall Street Journal article.
No comments:
Post a Comment