“Good for you, I’m thinking about it. Think housing is near the bottom yet?”
First off all markets correct below their trend line. Second, you’ll know the bottom is near when the average home can be comfortably purchased by the average salary for the area. Till then, expect housing to continue to fall especially if the homes prices in your area haven’t dropped at least 50% from their all time high
Correction: housing has to be within 2 to 2.5 times annual
income, anything higher and you won’t fit within the 31/36%
rule. If local median income is 50k, then the most the median can afford is $125k home with a fixed 6% 30 year loan.