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Hi jm,

I wonder the same thing - I bought our house in 1996, but if we were in the market today, there'd be no way on God's earth we could afford it - all things being equal in terms of income, etc.

You're making perhaps the MOST powerful argument for young folks actually buying TODAY, rather than waiting until some other planetary alignment occurs.

Economists fairly soberly are saying that the real estate boom APPEARS to be a much more stable and supported level of growth than business equities, and given the regional diversity is unlikely to retrace... They're also saying that the greatest levels of slowdown have already been seen (with some potential exceptions... SiliValley being one that's undecided.)

And . . . I'd refuse to take out a $200-250K mortgage like many people are doing. I'd rather pay rent - those mortgage amounts will hold you hostage forever.

If you're paying rent you're paying the LANDLORD'S interest... and I can guarantee you the landord's interest costs today are FAR lower than they were in 1996!

I don't envy buyers in this market. We hope to have our mortgage paid off in a few years, and won't go anywhere till we retire - I don't care how much our house is supposedly worth. We got a note from a local real estate agent the other day saying that "people were interested in our neighborhood" if we wanted to sell. My wife and I looked at each other and said, "and go WHERE? Trade up?" no way.

who still can't believe that someone would pay for our house what "they" say its worth.

jm... your last statement is what's fascinating because, from a market perspective, every day you're either a buyer or a seller (or, an owner or non-owner.)

If you believe that your real estate isn't worth buying at today's prices, market wisdom would say you're seeing your top, and you would be wise not to try to squeeze any more growth out of it.

Given the higher paragraph, this would support a decision to sell & move into a rental.

Instead, given my familiarity (however it is) of your preferences, I believe I sniff some sentiment from you that you ACTUALLY believe there is more likelihood of further appreciation, and you DO act as a buyer/owner today, rather than not... yes?

Dave Donhoff
National Mortgage Broker/Banker

(Just stirring up the contrarian brain cells!)
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