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We live in an area probably hardest hit by the housing bubble collapse. Although we thought we did our homework by waiting 18 months after moving here and watching prices decline, we bought after a 5-month plateau, in April 2007. Prices remained pretty steady for about a year; then the bottom dropped out, and hasn't stopped since.
Asking price for a house similar to ours when we moved here in May 2005 - $325,000
Our buying price in April 2007 - $277,000
Our 2010 Tax Appraisal rec'd 2 weeks ago - $156,000.
Having been unemployed for over 5 months now, this will most likely become our mortgage company's problem shortly - and continue the cycle of oversupply and falling prices.
I must say, though, if you have a secure job (and I know that's a big IF) - with the interest rates as low as they are, and the this-year-only $8,000 tax credit, you'd have to be crazy to not buy a house this year. My hope is that once it starts, it will gain momentum like a runaway train. Home sales have actually been up for the past two months (although prices have still dropped - but this will level out as demand approaches supply) Also, don't forget - there has been a virtual cessation of new home building for well over a year now - once the demand exceeds the supply, it will take a while for new development to catch up - it's a lengthy and expensive process. And prices will rise with the demand.
The next housing boom (and price increase) will involve the people who waited too long to get in on the really good deals.
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If you want to avoid 95% of internet spelling errors:
"If your ridiculous pants are too loose, you're definitely going to lose them. Tell your two loser friends over there that they're going to lose theirs, too."
It won't hurt your fashion sense, either.
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