[quote=rockingtime]Since you have lot of money for cash down, I’d say invest in some good relatively safe place to get you 4-5% return.
In couple of years, when and if the interest rates hit high, I am sure the prices would come down
Real estate prices in CA are cyclical in general and if anyone says otherwise, please look at the history.
Of course no one knows the future..[/quote]
If you look at the history of housing prices and interest rates you will note that the periods of interest rates increasing (notably mid 1960s to 1980, for example) coincided with home price increases.
SO, higher rates does not necessarily equate to lower prices. In fact, historically it has been the other way around. Higher interest rates generally track over the long run with higher inflation.
