Should You Buy A Home Now In The Midst Of The Real Estate
Bubble?
I have been watching this "housing bubble" for the past four
years. Twice I thought about buying a home and both times I
backed out based on the fear of being caught upside down on my
mortgage if this real estate bubble should burst.
The skeptic in me kept saying "surely the housing market will
collapse; I would be foolish to buy now". I speculated that if I
waited long enough I would be able to buy a house cheaper than
at current levels. My speculation so far has turned out to be
false. On the other hand, in 2006 many of the interest-only
mortgages out there will have to start paying principal. Also,
adjustable rate mortgages, while popular right now, will see
their rates increased in the next two years.
The doom-sayers keep predicting a bursting of the housing
bubble. Even Alan Greenspan has cautioned The Public about the
over-heated housing market.
So where does this leave us consumers who may be looking to buy
a house in this current market?
Well I have to revert to the clich