[quote=CA renter]
Makes sense to me with two caveats:
1. You say that any non-distressed seller today is crazy. If I were a long-time owner and were concerned about the housing and stock markets (not even going into the default risk for municipal bonds, which so many seniors own…or the Treasuries that are yielding next to nothing), I’d seriously consider selling my still-bubble-priced home so I could move to a much cheaper location and preserve some of my equity.
In many areas, prices are still in bubble territory (post-2001 prices), and the market is HOT…this is the time to sell, not buy, IMHO.
2. That interest rates will remain low. I’ve been waiting for higher rates now for years, so concede that I’ve been terribly wrong for a long time, but someday it has to happen with all the printing going on, no?
[/quote]
1. I say “crazy,” because, what’s the point? You’re already down over 40% in most cases. Is the hassle and aggravation of moving worth it to miss the last couple of innings of this thing? I think most people will say “no.” Money’s important. But at some point, money can’t compensate for the aggravation. If you missed selling in 2004-2007 and you don’t have an issue with paying your mortgage, your life’s going to be easier if you just sit tight and wait this thing out. Just my opinion.
2. Some day interest rates will rise… but it could be a few years (or it could be a year – I don’t know).
