housing bubble crash

[Sam Speciale]

Hello I have a hypothetical question. what would be a good strategy if the housing market crashes and I am just starting out and haven't bought anything? Should I buy or wait? 

[Account Closed]

What is your definition of a housing crash? What we saw in 2008 was a financial meltdown that impacted the housing market. It is unlike that that kind of crash will occur. Most likely what will happen (is happening) is that prices will stop rising. As credit markets ease, you will see a return back to home ownership so that I believe we will return to a more normal pattern.

In the Dallas/Ft Worth area, home price over the past 40 years have only appreciated 2% annually. That is not to say that some areas have not seen significantly more than others but the overall average has be very mild.

As for the rental market, there is no doubt that the DFW area is starting to get overbuilt and that rental rates for apartments are reaching a peak. Many new projects are offering free rent and effective rental rates are leveling off.

The housing crash that you fear is either already started or will only be clear once you are in it. I think the comments above are on track for the most part, that being that if you focus on rental income as the basis for you investment, appreciation will take care of itself. If your intent is to make short term money through rising home sale prices, I think that ship may have already sailed.