I just can’t see the government raising rates any time soon. What would be the logic? Is our economy so much better that raising the rates would help it?
Our economy is not the best and I don’t see a dramatic improvement any time soon, regardless of how many bailouts they attempt. I really believe the core problem is good paying jobs.
That has been the problem for a while. People made money out of thin air during the dot-com era. That got diverted into the real estate game. Now that the house ATM machine is run dry, we are still back to the same problem. Making money.
If there are no plentiful good paying jobs out there, the government will have to come up w/another get-rich scheme. Or maybe they have. It’s the bailout scheme. Get in line. See if there’s a way to get some bailout money.
Sooner or later, the rooster is coming home.
As far as buying, if it makes sense to you, then go for it. I’m not familiar w/SEH, but if pricing is close to the 2000-2001 levels and/or your rent is close to what your mortgage would be, then take the leap.
Even if there is still further depreciation in a year, factor in what it would cost to rent for a year. You can probably do that math and see if it makes sense.
We are not at bottom yet, but there are deals out there. Be ready, have some down, minimize debt and have good credit. That will make you a strong buyer.
Oh – important. As much as you can, make sure your job is secure and you have some savings.
