buyorhold, as you can see you’ve entered a blog with a prevailing point of view. I share that view – that home prices are more likely to go down than up in the next few years – but I and many others here recognize we could be wrong.
I have a sister who is a teacher earning maybe 10-20% of what I earn. She has no financial education. I make a living designing complicated new financial products and negotiating with investment banks. She (like my other 4 siblings) bought properties years ago (and many thousands of miles away) that I thought were way too expensive. From her initial investment of a few $100K total, she now has no debt and several million dollars worth of property, just like my other siblings. I, the financial expert, always thought property I wanted to live in was overpriced, and now I can’t afford a small condo (using my own conservative affordability rationale). So don’t be intimidated by the geniuses here.
Having said all that, I wouldn’t buy right now. There are definite early signs of a classic cyclical downturn. Could be a false alarm, but I think you should be especially cautious and reflect on your capacity for patience.
