marion, no, I don’t have money to lose. I’m just stating the fundamental. That’s the best I can hope for. Sure, we’ll probably undershoot just like we overshoot. But that’s just icing on the cake. I agree, 2003 price, houses were over priced. I’d reserve the “way” part to 2005, but that’s beside the point. But 2003 nominal price + 5 years of inflation, would not be too bad of a deal. When I’m talking about 2003 price, I mean Jan 1st, 2003, not Dec 31st, since 2003 saw a HUGE run up. You have to do the calculation for your own specific case, but you also have to consider that renting is losing money as well. If you can buy a house where the mortgage (P+I) = rent, then why wouldn’t you. I hate to sound like a perma-bull but you have to live somewhere. So if the interest you’re paying the bank is less than the rent you’re paying, then what do you have to lose? I’m also using 0% down to do the comparison as well, to keep the calculation as fair as possible.
