I've been trying my best to read anything and everything going on in the real estate market so I can anticipate any surprises. What caught me off guard was an article in the NY Times about the jump in foreclosures. My heart really goes out to anyone losing their home out there.
I'm a big advocate of people not renting in favor of owning but there is a line of comfort that shouldn't be crossed. People often look at how closely the prices of homes are tied to rent for similar situations. So if a house is being rented for $2000/month then you'd think the mortgage is $300-325,000. When things go crazy and the same place being rented for $2000 is being sold for $425,000 - it's time to sit back and let things play out.
Tuesday, September 18, 2007
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