We are watching and waiting, too. We bought in fall 1995, at the bottom of the previous cycle, and I remember all the elements of today’s market were in place then, crazy loans, unreal prices, lots of inventory…we bought a new house that had fallen out of escrow three times. We eventually sold that house in 1998 at a good profit, we didn’t think we would be back in San Diego (military). Now that my husband is retired and on to a civilian job, we are waiting for the market to correct. We could afford to buy now, but we are unwilling to over-extend ourselves just to “get in now” because we know that the market is frothy. So we wait and rent at 1/4 what it would cost to buy.
