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Originally Posted by ken0042
How do you figure? I would have thought the opposite would be true; because a house I buy now for $300K will be worth $340K in a few months, how is that really a risk? Or is there something else I'm missing here?
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Sounds like you're in your first house and you're young dn inexperienced, I'm guessing.
Yup, you are missing something. Do you think these prices only go up? They certainly do not. This market will correct eventually and when it does it can go down a lot. Witness the tech meltdown in 2000. House prices can shed 50K at these levels. Don't think it can't happen. It has before and will again.
The statement "a house I buy now for $300K will be worth $340K in a few months, how is that really a risk?" is pretty naive.
I'm not predicing a real estate meltdown in the next couple of years because the economy is too hot, but just understand that there are risks.