Posted by Elizabeth Soliday on 4/21/07 12:24am
Msg #186229

OT: Subprime Market

http://www.fool.com/personal-finance/home/2007/04/19/the-subprime-survival-guide.aspx

Just my opinion, there are only so many people to buy homes with significant down payments (the elderly, the savers, and the lucky ones who sold their homes in hot markets). Actual value of homes will take into consideration how many of these people there are compared with the highest wages in the area (and what home could be afforded with them).

Interesting that my husband makes a high wage for the area and we were just about put "out of the running" because homes were so expensive, then the home prices stopped increasing just as we bought a very small home (estate sale).

That said, I don't expect housing prices to go down (much), but I would be very cautious and conscious of the wages in the area before buying in a hot market where prices are rising fast.