Homes are illiquid… You have no idea what the prices will fall to.
The thing that lots of people out there just don’t get is that a real estate bubble takes a long time to unwind. I think that the posters in this forum do understand that.
WTB you seem to feel that prices are somewhat stable, only could go down by 10%. You also don’t seem to realize what prices have done. They have gone up by 300% in some areas (more actually). All while inflation was at 2-3 percent (or less). Some posters feel that 2004 pricing is current. What about 2002? 2000? 1998? Economics are a freaky subject. But cycles happen, and they happen in CA much more than the rest of the nation.
It will take a lot of time for the bubble to deflate. There have to be as many buyers as sellers, and there aren’t. So the buyers will push pricing down. The new homes will push pricing down. The loss of jobs and economic news will push pricing down.
One thing however, the stock market is not illiquid. It could tumble. This is much more likely than going up dramatically. Companies can start firing and reining in expenses. Home prices will drop like stones (if anyone can find a buyer).
Amazing that you would consider purchasing at a time of huge supply after a market that has gone orbital. From your previous posts I am pretty sure that you are not financially secure. Can you put down 50%? Are you willing to lose that much money? If your home is worth 40% less in 5 years how upside down will you be?
