David – Good luck to you and your family. There are people out there who are pulling less than 50k a year deciding to buy similar priced homes, but you clearly have the income to make it through a downturn, even if it is steep. Assuming all software engineering jobs are not outsourced to India next week.
I am curious about the analysis you have done to determine that you are better off with this decision. You mentioned the emotional aspect of owning a home, and if that is the basis of the decison then I understand. But as far as the numbers are concerned, how much of a drop do you think we will see? And under the scanario you are going with, how will the numbers work out for you in 4-5 years when you sell?
I’m curious because I have a family as well, sold a home last year, want to buy another house for emotional reasons, but have decided that right now is the worst time ever to buy. When I say right now I literally mean this month and the rest of this year, not necessarily next year. The selling season is over, inventory is at record highs and not selling, prices are being slashed everywhere. Most on this board believe that this will be a prolonged downturn, and even a recession. But even the ones who don’t believe that still think the rest of this year will be a bloodbath. I sold a home near Escondido earlier this year, and in just 4 months prices in that neighborhood have dropped 10% and the whole street is for sale.
It sounds like you got a great deal, but consider that in the same way Spring 2004 was the best time ever to buy a home here because prices were going up daily and inventory was super low, this may be the worst time ever to buy.
