A recent college graduate wants to buy a newly built 1br condo to live in an inner suburb of Washington, DC. He was thinking of buying one for about 280K. He was pleased that the price had come a bit from last summer's peak.
I asked him "How long do you plan to live there?"
He: "About 10 years"
Me: "10 years? Don't you want a family and children and all well before then? In 10 years you'll be 35."
He: "Ok maybe 5 years"
Me: "What do you think the 280K condo you are considering buying will be worth in 5 years?"
Yikes! Talk about unrealistic expectations. I politely explained why that would not happen.
My mom's friend who is involved in specialty homebuilding in the North Shore area (northern Chicago suburbs along the lakefront) has been in the business for a few years. He told my mom that "nothing is selling."