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I heard an interesting point the other day: if stocks are at levels of the mid-1990s, then housing should more or less reflect those prices. A housing boom drives the stock boom, pricing people out of homes unless we can make money (emphasis on "make," not "earn") so people can buy houses. That's what happened, and prices of homes are unsustainable at 2007 rates. Supply, demand.
Look at the quotient of "affordability," which means a buyer roughly should have a ~20% down payment and be able to make a 30-year mortgage agreement with a *private* lender. Even if you don't spend all that on a down payment, at least have it.
Be conservative right now. I think it's got more falling to do.
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Scott Kinder
kindersport @ gmail.com
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