I have been patiently waiting as I fully expected there would be a lot of inventory coming on-line soon, not to mention the option arm resets expected to start in earnest over the next two years. I have been trying to weigh the amount of money “wasted” renting with the potential loss of equity if home prices depreciate substantially from here.
Up until this point it has been a “no-brainer”…I have been much better off renting. However, things have certainly leveled off. Will there be another leg down? Is there really shadow inventory out there, and even if there is, how will it be released and what effect (if any) will it have on prices? (All rhetorical questions of course)
One more question if you don’t mind. At what price point does the competition narrow substantially? 600-650K, or is it higher than that?
