If you buy a house right now, aren't you in essence just jumping on the Titanic?

Question

I think house prices are going to go down to 1999 levels, wiping out trillions of dollars of equity. A home is going to be like a prison for millions of Americans. It is the bubble to end all bubbles.

Do you agree or disagree?

Answer 1

It depends on where you live.  We lived in NJ, sold our house 4 years ago 2 hours after the sign went up and made $200,000.  My sister just sold her house in NJ in 2 days last week, and made $25,000 in 3 years.  That market is very stable still, and there are plenty of buyers.  Here in Indiana where we live now, home are selling a bit more slowly, average about 90 days on market, and prices rise 1-2% per year for the past 4 years we have lived here.  Slow and steady. We paid cash for our home basically, and it is worth just a bit more than what we paid for it, which is fine with us at the moment.

Answer 2

It depends on what part of the country the house is in.  The housing market in Phoenix, one of the hardest hit areas, is said to turning around.  So for a person living in Phoenix who wants to buy a house this would be a good time.

God bless!

Answer 3

People who "need" a house are more likely to be buying one irrespective of the conditions. Economic indicators are always subject to question, and even if we are in another bubble right now, it's a little hard to wait and see where this Titanic will go.

In a sense, I 'partially' agree with you.

Answer 4

Housing market has already bottomed in most areas of the country.

Those who buy now will happy they did in 10 years.

Answer 5

I totally disagree.  All this "prison" and "bubble to end all bubbles" stuff is just buying into someone's fear mongering.  

The real estate market goes up and down just like the stock market.  There are vigorous periods and corrections.

And the real estate market in any one area is affected by the general economic condition in that area.  Take where I live...  this town benefited from BRAC so the housing market here is booming.  Other small towns further south are really taking a pounding because of fuel prices.