Pretty good read on topic:

http://www.nytimes.com/2010/08/23/business...=2&ref=business

 

Yeah, its going to suck, trying to buy a house in a few years with 8-10% interest rates. I'm not saying the OP has to rush, but the dip is only going to go up from here, its just a matter of when. There are still tons of for sale and awaiting sale homes though, so I'd think you have a good 2-3 years with lower rates and prices.

 

Don't scare me with 8-10% figures I need-a' graduate and save before they come!!

On another note, may I suggest NOT watching HGTV

I watch is more than any other channel (I love renovating, and shit--no homo) and I feel like they make it seem the "norm" to have multi-ten-thousand-dollar renovations. And make me want things I won't be able to afford for 10 years, or ever, even.

 

Haha! Yeah. That's ridiculous. I've seen programs (don't remember if it's HGTV or one of the other networks) where they're like: "Look at what we can do... and it cost less than 90 thousand dollars!" I'm like... WTF? 90 thousand dollars!? I could build a whole other house for 90 thousand dollars. And they're spending that much on a kitchen renovation!

 

Bang for your Buck?

It's where they take 3 renovations and compare who got the greatest return, all from the same general area. It's like, $90k kitchens, $120k BACK YARDS, $75k basements, $50k BATHROOMS, the list goes on. But it's pretty ridiculous.

I don't need a lecture on equity, or anything, either. But they HGTV does a very good job of taking things that are some-what out of reach for the average homeowner, and make them seem very attainable.

 

Hey I like that show! It's not ridiculous if the average cost for a house in the neighborhood is like $500k and someone picks up a 'fixer-upper' for $350k and spends $75k on an upgrade or two.

Girlfriend and I are looking at starter homes, and the absolute cheapest we can get one for is $300k or $275k with work needed. The norm for starter homes in this region is more like $350-400k. I find that comical when one of my parents' first house cost them $32k and it was twice the size of the stuff that's available to us.

Real estate has gone way out of whack. The cost of living has sky-rocketed, while incomes haven't. Good luck buying a $400k house for you, your spouse, and two kids when you're making $50k gross (the US national 'real' income).

The economy needs people to work the low and mid-level jobs, but you can't support yourself, let alone a family, on that amount. Now interest rates are going to go even higher in the years to come and people will just spend their lives renting from the rich who have enough disposable income to buy multiple properties and avoid paying interest at all.

I think we need to see "starter" salaries in line with everything else that's gone up. People fresh out of school should expect (and be able) to earn $75k+ to afford life.

 

Oh, I love it. It was just an example.

 

This Indian couple is young and keeps the house immaculately clean and fresh. I doubt they cook much, as the kitchen is superbly clean and the house has no smell whatsoever. But they are so cheap to discount only $3K off of the asking price, ESPECIALLY in this economy. We'd love to buy their house at the right price, but $3K off is not acceptable. So we're looking again.

 

Don't worry too much...it's not a perfect offset. But pretty much, when interest rates go up...the price of houses goes down.

 

I guess I'm lucky. I got a VA loan with nothing down and nothing out of pocket. Got a 6.25% APR January of 2009. Recently refinanced at 5% a few months ago. Of course I got a foreclosure for $78k. And no PMI, just a one time VA funding fee of $1700. I watch HGTV a lot. It's always "will they choose the 500 sqft bungalow for $500k?", and I think they are smoking crack to pay that much. I know I'm in Lugoff, SC but I got an older 1500 sqft ranch on 1.25 acres. It's structually sound, but needs a bunch of small things. Which I enjoy doing. I still want Holmes on Holmes to come renovate my house!