From the early 1970′s until around 2006-2007, it was common wisdom to encourage buyers to buy as much house as they possibly could afford. With home prices on a multi-year trend upwards, it turned out to be sound advice. Most buyers back then based their decisions on the amount of the monthly payment rather than the price of the property.
The world was turned on its head when the financial meltdown occurred. Most of us who have been in the business a while had experienced short recessions but never anything like what we have all gone through. The question now is, did we learn anything from all of this? Read the rest of this entry »