Who is buying houses right now? Primarily 1st time buyers, hedge funds and foreign investors – very few move up buyers.
If housing prices rise it will be partially caused by inflation.
For 1st timers it is almost a no brainer – low interest rates, $8000 credit, prices up to 50% off from the peak – it’s been a feeding frenzy. I have a feeling this frenzy is starting to fizzle out a bit though, particularly with the buying season winding down.
