According to Trulia's research, it will be cheaper to rent than buy in the Bay Area when interest rates hit 5.5%. For most of the rest of the country the rates would have to hit over 10% (!!!) for that to be true.
So it should prove interesting what happens then. That said, my wife and I are in the middle of (trying) buying a house here. So far, there is intense competition amongst buyers. One home we put an offer on had 19 offers total. We offered 21.5% over asking and at least 3 offers came in ahead of us.
So it should prove interesting what happens then. That said, my wife and I are in the middle of (trying) buying a house here. So far, there is intense competition amongst buyers. One home we put an offer on had 19 offers total. We offered 21.5% over asking and at least 3 offers came in ahead of us.