“The statistics show that the under $500K homes are almost half the inventory. So there’s a lot for the first time buyer to choose from. I don’t know why they’re not buying – waiting on the sidelines, or not able to qualify?”

I don’t often post, but read this forum frequently. After keeping an eye on housing prices in SD for the past 2 years and as a renter, I like to know what I’ll be getting into one day as a first time buyer. I, along with friends and family my age (27-30) who also don’t own property are in a holding pattern. Prices are too high (along with the prop. taxes), ARM loans too risky right now and the knowledge that this whole housing scheme will collapse under its own weight is why us first time buyers aren’t buying. Sure, there is a lot to choose from, but I’m not willing to sacrifice my financial future just to “get in” and own. I highly doubt that in 5 years a $500K home will be worth a million like everyone is trying to convince me. I hear this daily. I’m tired of home owners twice my age telling me that I “missed the boat” or I “better buy now or I’ll never be able to…ever”. It’s just a bunch of nonsense to make themselves feel better about their purchases or to ensure that yes, their home will be worth twice as much 5 years down the road. I’m just fine renting for $1000/month.