Well we’re trying to beat the housing market crash. Right now California is in the middle of it with homes which sold for $400k now on the market for $70k.
My take on it is two fold – There’s no point in buying a house at current prices because that bubble is just going to get here within six months, but now’s the time to put in offers and give them $10k profit or so before the feeding frenzy. Anyone watching the market here knows it’s coming, and I feel like if there’s some good pickings now, there’s no point in trying to get something during the next bubble later. The next bubble is going to be made of people who are buying rock bottom homes (foreclosures, etc) and then trying to resell them.
The trick, of course, is finding someone who agrees with you that their asking price is ungodly. Unlike cars, there’s a good amount of people I’ve realized throw a coat of paint on a house and say “Well the house down the street sold for…” and expect the same amount. Nevermind that the house down the street had a totally new interior, new appliances, and was immaculately kept. There’s a surprising amount of people with houses they haven’t kept up for jack and they expect the asking price of the guy down the street who is also throwing in a flat screen plasma.