The housing market is on fire which is bad news for new home buyers! Houses in good neighborhoods are selling over list price within mere hours of being listed. A major culprit of this market craziness is the government moratoriums on foreclosures and evictions—this has frozen real estate markets which has left homebuyers and investors scrambling for the scraps.In hot markets like these, new homebuyers can risk overpaying for a house. So what are you to do?Seeing that I was in this exact same scenario in 2005 and I made the wrong call, let me recommend that before you start looking for a house, establish a budget for your new house—don’t pay even $1 over your budget! And, if this means you can’t afford a house right now, rent until you can. Sometimes it really pays to be safer than sorry!
