There are some areas of DFW where home values are dropping, and people can't sell their homes because they are suddenly upside down in their mortgages. Fortunately, my area is pretty steady, with modest increases in value. I wouldn't want to see now, though, because many people are just staying put.
70808. Hundred Oaks. It's a nice neighborhood, I just haven't been price watching much. Not a lot of sales around me lately, but some homes have become rental houses because rent is so lucrative that close to campus. People upgrade and keep the old house instead of selling, bringing in $1500-2000 a month.
You should try anyway. Don't overreach, but rent is a waste and a house note is an investment if you go about it smartly. And early. If you have a steady job, consider it. I waited until I was 40 until I got serious about buying a house and investing my money wisely. That was about 15 years too late. I never thought I had enough cash, either, but in retrospect, I had enough to so something but I dawdled, making excuses. If you're not ready to buy yet, start saving for a down payment. A big DP can make a huge difference. I had a 20% down payment which was the main reason that I was able to afford a 15-year fixed rate mortgage with a note less than 600 bucks. Your first house doesn't have to be a huge one.
we would be in a world without credit scores and capital markets would tighten up even more than they have already.
It was a 15-year mortgage and it was paid off three years early. It's important to have a house paid before retirement. A 30-year mortgage would have me working until age 70. Now I can retire this November if I really wanted to. That's why a 30-year-old needs to waste no time in finding himself a house..
I read that the subprime crisis is past, but that 2 more waves of defaults are on the horizon. Option ARMs and later, Alt-A mortgages will see more defaults in 2010 and 2011. Of the subprime loans that have been modified in the last year, 60-70% are re-defaulting. Housing still looks bad to me. If the area was firecracker hot 4 years ago, it is sinking like a rock. If your area didn't go up too much, it won't fall too much. We haven't talked about commercial real estate (CRE), but that's not looking good either.