I don’t think buying now is most certainly a fools game. However buying last year this time was most certainly a fools game. I have a friend couple who bought last year and we tried our best to persuade them not to. But even now after seeing all the blood, they have developed “Stockholm syndrome” and kept telling us that housing is not an investment, and you should just buy when you can afford it. Of course, their combined salary was much higher than ours so I bet they can afford it. But still I think there is no reason to flush $100K into the toilet.
I think it becomes more subtle now (maybe because I already bought). We are seeing demand going up to meet the supply. However, like TG, I am all focused in Temecula area therefore I don’t have much data in SD area. But when more and more properties become cashflow positive (as sdr mentioned in some of the thread), it is hard to call that a fools game.