This is a stand-off
Sellers aren't selling or coming down in the areas we want- and so we aren't buying. Nyah-Nyah-nyah.
Pointing and laughing
For the people who have screamed out about "catching a falling knife", I hear ya, really I do. But the uncertainty of living in a rental or buying at a (what we consider a reasonable price) greatly reduced (think early 2004) price in a superior school district at 6.5% interest on our loan really influenced our decision. We will be in a neighborhood that we love (even at night) with parks, superior schools and a grocery store within walking distance. The backyard has room for the swingset of doom. The guest room is sufficiently removed from the rest of the house so my mother in law doesn't have to listen to my children at odd hours of the day and night.
Comments
We are in a similar situation (minus all those warm bodies you have; 'we' are just two). But, we too (two) would love to find a nice Westside home for a reasonable price. We can 'afford' much more than we're hoping to spend, but don't really want to spend over $2m on a house, it seems totally absurd when you consider the alternatives (renting now, saving $, & buying a retirement home later/elsewhere).
So after having several offers rejected, we have given up for now, and are watching prices [stagnate]. (And we're also watching buyers continue to gobble up some Westside homes at what I think are still-too-high prices.)
I hope that there's a ceiling to this craziness and that the days of loose credit, NINA loans, and speculating flippers have gone. We refuse to overpay & encourage more of this nonsense. A return to normal supply & demand, with home prices tied to area incomes will be welcomed by us!
think of your (non-wasp) kids. teach them something before its too late.