Surprisingly, Austin, Texas ranks number one for the most overpriced housing area in the nation. Los Angeles metros rank number two according to Trulia.com. And for more “good” news, rent in my area has been increasing every quarter and expects to increase another 8.2% over the next two years. Lucky me.
Now, of course, many people will scratch their heads and say, “Why don’t you just move?” That’s easier said than done, and believe me I’ve thought about it. But, I have a very solid plan in place that I think will unfold nicely if I can afford a home in 12-16 months from now. In the long run, my plan is to move out of the state, but many years from now…unless California is actually in a 100-year drought, in that case I might just pack up and move east. This desert-like weather is really grating on my nerves.
But what about that home? The only silver lining is that home sales have slowed down, which means home prices may stagnate or dip a bit between now and late next year. If that happens, I’ll be in a pretty good position to buy something at a decent price. Home prices in California have historically risen over time, unless a home is purchased at the peak of a boom cycle – then home values are harder to gain back over a decade. Using the appreciation of the home, I should have a little left over from a sale in 15 years to use towards a down payment on a home out of state.
I just have to time the market, which is a bit scary considering it’s looking like we’re in a bubble again.
I’ll be keeping a very close eye on home prices over the next year and considering all my options.
Did you buy at the peak of the housing boom?