Cayman
Recycles dryer sheets
- Joined
- Nov 14, 2015
- Messages
- 445
Wait or take the plunge?
DD very much wants to buy her first home and is understandably scared off by current high prices. She can be very patient, but wonders if prices will remain high due to Fed reserve policy over the past 2 years - she asked me if home prices will remain high indefinitely due to increased money supply (M2). She's concerned that so much money was created during the past two years that a few interest rate hikes and slowing the Federal reserve's QE purchases in March won't move housing prices down much, if at all.
What would you tell her?
(Yes she has a sizable down payment and good reserves) If this is a bubble, she could easily be out 30% of her purchase price. She's concerned that waiting may = even higher home prices.
DD very much wants to buy her first home and is understandably scared off by current high prices. She can be very patient, but wonders if prices will remain high due to Fed reserve policy over the past 2 years - she asked me if home prices will remain high indefinitely due to increased money supply (M2). She's concerned that so much money was created during the past two years that a few interest rate hikes and slowing the Federal reserve's QE purchases in March won't move housing prices down much, if at all.
What would you tell her?
(Yes she has a sizable down payment and good reserves) If this is a bubble, she could easily be out 30% of her purchase price. She's concerned that waiting may = even higher home prices.