[quote=pemeliza]
At appears that in certain market segments buyers are getting the benefit of ultra low interest rates and low prices. In theory there probably is a relationship between interest rates and prices but this sales history suggests that it is not likely to be linear.[/quote]
the key is certain market segments and locations. this has been an uneven bursting. with certain type of homes and certain locations still very much in bubble territory. while I agree with a lot of folks that it really boils down to personal choice, I think I would tweak it a little by saying it really boils down to personal flexibility. I got into it with the other sdr a couple of times already with couple of specific Carlsbad properties. bottom line of it is if a buyer is not flexible with their check list of criteria, expect to pay near bubble pricing.
but if someone is willing to be flexible and take a chance on newer communities in very good school districts, and the only fault the community has is it was built during the bubble era and therefore there is a lot of distress, I firmly believe this is the time to get in and that person will be handsomely rewarded for it in the future.
again this then goes back to personal choice. I for one just can’t bring myself to pay double the housing cost so I can be within 5 miles of the coast. others can’t imagine a life outside of that 5 mile boundary. If that is the case, I think renting is still quite a viable alternative.
This may be the ultimate reason why the argument gets so heated. everyone thinks they are right because truly, everyone is right. for that person’s personal preference and location, they have done the right thing by buying or renting. but by not figuring out where that person is and what type of property was purchased, an argument ensues.
