The Real Estate Crunch

You know, on NPR, I heard there was a suburb of Cleveland, Ohio where almost every house was empty due to foreclosure, or being very close to foreclosure. That is totally scary. And I see all of these new home sites going up around where I live, advertising homes from $800,000 to $2 million. What?!?!?! Who can afford all of these? It's insane. People get an adjustable rate mortgage so they can get the house they want. But with record lows in interest rates, you can bet they aren't going to go down, but up. I've also heard that real estate flipping (buying a house and quickly reselling it) isn't as profitable as it once was, because no one wants to buy a house right now...not even ones that have been foreclosed on. I know I don't, not until stuff has settled a little. And, I just moved in here, so it won't be for another year or two that I even begin to look. So I'll just sit tight and watch how this all pans out. I just hope the interest rates aren't much higher than they are now, that's for sure.