[GregoryFul]

I'd rather own "real" estate than unbacked dollars.

[djf]

What most people don't understand is that the market os only on the surface driven by supply and demand.

The real question is liquidity.

If the lending institutions for whatever reason start to cut back on available financing, prices could plummet.

Cash would be king.

I hear over and over "Boy, if prices fall I'm gonna scoop up some real bargains!" Only if you either have cash or can get financing. Because you WON'T BE ABLE to get whatever you think your place is worth now.

[dennisw]

this is mostly true

[SuziQ]

A little reality is a good thing. I hope people will avoid getting themselves too far into debt in the future when trying to buy a home. It is tough finding a first home when the income is lower.

The biggest problem is that young couples come into marriage these days expecting a home and a lifestyle to which their parents have gotten them accustomed, forgetting that it took their parents MANY years to get to that point. They also purchase a home that requires two incomes to maintain forgetting that many things can happen that can disrupt that picture; pregnancy and childbirth taking the woman out of the workforce for several weeks or months, or sickness or disability of either the husband or wife.

[mplsconservative]

Geez. This guy cites ACORN as a source, one of the most lefty groups I know of from my time in the big city.

Woe is us. The sky is falling!