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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: J. P. who wrote (11794)	7/28/2003 10:56:41 AM
From: Tradelite	Read Replies (3) \| Respond to of 306849

<<Just don't see the sense in buying a top>> I'm sure many people agree with you after the rapid appreciation we've seen lately, but... What if the U.S. actually does see a surge in economic growth over the next few or several years, and this creates more and better-paying jobs for all those young people entering or already in the workforce who haven't yet bought homes but plan to in the future? If the market is going to get even more crowded with buyers in the future, are we sure we've seen a top? Are we sure there won't be more, instead of less, competition for available homes? You mentioned that you would rather pay a higher interest rate and get a lower house price than vice versa, but have you figured out what an increase of 1 or 2 percent will cost you over the life of your loan? It could wipe out any savings you made by getting a lower house price. If you are willing to pay a higher interest rate, don't you think all the other buyers will be willing to do the same thing? (Of course they will.....I never saw anyone decide not to buy a home they wanted just because of interest rates, except way back when rates were in the low-to-mid teens and many people simply didn't qualify for them.) One reason people traditionally don't make home-buying decisions based on interest rates is that no one knows where interest rates will be from one month to the next. Some of the few people I HAVE met who obsessed over timing their interest-rate lock-ins (and a few who stubbornly refused to buy a home because they were convinced the seller was going to soon reduce the price) wound up as losers. They were victims of their convictions.