Check out this article on BBC News. It seems that the new housing market is now taking a hit. The article states that higher gas costs and higher interest rates are to blame.

But isn't that just painting a pretty picture? How about the fact that in order to buy a house (near where you work) you need a solid $300K. That means you need to be making about $4500 a month according to the dcu.org payment calculator (assuming you also have a car loan). What percentage of the country can easily afford this?

The housing market is overinflated and is in need of a correction. I think what you are seeing now is more and more people are waiting it out. At first they thought it was going to be short and were looking to cash in. Now people are seeing it get worse and worse and they say to themselves the longer you wait the cheaper it will be. It will be interesting to see how bad it gets before it gets worse. For people that have a home now and are getting concerned, don't be. No matter what people need a place to live. That will never change. You (probably) made a 30 year investment. At the end of that time you will have a home that is yours, lived in it for 30 years and maybe just maybe have a profit.

Anyone see a cheap lake house in groton, ma? Or should I keep on waiting?

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