Friday, March 9, 2012

New House

So I have a dilemma. I'm looking to buy a new house but I can't pull the trigger. We almost did, putting an offer in, but got out bid by someone willing to pay full price, the seller's title fees and waive the option period/inspection report...pure insanity.

Anyways, I know interest rates are going to rise soon, and when they do I'm sure it will be a big jump. At first housing prices will come down a little bit, as demand is somewhat stifled by the rise in real prices with higher mortgage rates.

But eventually, no one will be willing to sell their homes at a substantial loss, so people my age (late 20's early 30's) will have to settle for less house as they try to finance fewer dollars because of the cost of capital. If you ever want to be leveraged, now is the time.

I JUST CANT FIND THE HOUSE.

Its getting very frustrating because my wife and I look constantly. We spend hours on our local real estate website, HAR. It saves us tons of money because it keeps us from going out or buying other crap.

It also keeps us focused. Our budget is fantastic because its like we are always saving for this damn house that never comes into fruition.

Ultimately, I just don't really know what to do. I'm sure several readers have felt like I do, where your price range is between two markets in your area. Spend less and there is a ton of crap. Up your ante $100K and there is loads of really nice stuff. But you pick that in the middle and there is NOTHING. Its troublesome to say the least.

The only other idea we have is stay where we are a couple of years and buy something at the next level and until then, restock the wife's shoe cabinet, buy her some jewelry and take an extravagent trip somewhere (mind you we would still be saving, but you have to have fun while you are alive or whats the point).

What are your thoughts?