To be fair – some people (maybe not many) have been saving and riding out the bubble and some may have even timed it right, sold at peak and stashed their cash. They are in a better position than some to buy. Some, maybe not many, but some do have secure jobs.
I can understand for those people, if they see a house they want that they really like and intend to be there long term, I can understand them buying, even though others do not believe we are at bottom. Some people maybe have done the math and determined the cost to buy versus rent and although some may not think we’re at bottom, maybe it’s close enough to tip the scales in favor of buying in certain areas, rather than continue to rent.
No doubt these are uncertain times, but having a house can sometimes even make people feel a little more secure. Maybe some people just don’t care if they buy at bottom. After seeing so many people living for free, some for a year, I guess they figure that’s the worse that can happen if everything goes sideways.
I know for me personally, it still doesn’t make sense to buy where I’m looking. That still doesn’t stop me from looking and making lowball offers. I do hope someday to find something that makes sense to me. That is different for everyone. I’m sure there are some places out there that make sense for that particular person’s budget and area and not for others.
Brian – the key would be “afford” and that definition is very personal. I would say if you have sufficient savings and have a secure job – as secure as can be nowadays – and the house is being purchased w/a 30-year fixed and payments that are not at the limit where you squeaked into qualifying, I can see why some people would just take the plunge.
