US house prices freefall continues

[Dauphin]

For me, the rent/buy decision was mostly about exit strategy potential.

1) Rent, I could leave a place whenever I liked.
2) Buy, I have to be able to rent it out at enough to cover my mortgage and other costs even in a depressed rental market AND/OR ride the luck of the market prices at the time I want to sell.

[KrazyHorse]

One would assume that the reduced flexibility is already priced in (again, for the average consumer)

[Dauphin]

Kind of my point. It's the individual's flexibility needs that effect the decision more than the market rates for rentals or buying.

If I'm only going to be somewhere for a year, I'm not going to buy.

[Rufus T. Firefly]

As long as we hit bottom in September, 2010, it's all good.

[Dr Strangelove]

Well if US House prices have collapsed how much for a seat in the Senate now?

[Berzerker]

you know what wont deflate? property taxes

bastard politicians

[Seeker]

Property taxes are not really the problem.

See California Propositions regarding them...

The problem is spending.

Stop the spending!!!

[DanS]

Does this mean I should buy a house in DC as opposed to renting?

Lots of timing considerations. Among other things, if you aren't going to stay in a house for a long time, the transaction costs are prohibitive. Legally, you can break a rental lease for a number of reasons -- more flexible.

But just looking at the market, I note that the Washington market has held its value better than all markets since 2000 save New York City. I don't know whether that will last. If this month's large drop in New York City is any indication, then perhaps it just means that Washington and New York have more room to fall.

In any event, you will not lose out by waiting a year or two to buy. I'm waiting for things to sort out.

[Ben Kenobi]

I see Arnold is threatening to cut off welfare.

People still believe that Obama won't bail out California? It's inevitable.

[DaShi]

Does this mean I should buy a house in DC as opposed to renting?

They will just raise property taxes to pay for healthcare.

[Patroklos]

I am looking at moving to San Diego, Seatle, or Hawaii (I doubt I will buy there) in a year and I am of the opinion that all three will continue to decline until then. However, I think that renting will still be the best option for me even then.

[self biased]

Internet advice on house buying. The best advice you can get.

just like internet dating advice.

[Drake Tungsten]

They will just raise property taxes to pay for healthcare.

I'm already resigned to rising tax rates. There's really no way to avoid them thanks to Obama's irresponsible deficit spending.

[Dauphin]

If you can't avoid taxes, try evading them.

[Drake Tungsten]

That's probably not the best idea for a government employee.