Your husband is just being cautious considering all the short sales and foreclosed properties out there. However, I would remind him that everyone who buys a home is an investor, with great benefits.
Basically, now is the time to buy while both interest rates and home prices are still on the low side. I believe it would take more than a year for the current trend to completely reverse itself, that is, high inventory and low demand. In the meantime, interest rates may jump to 5% by year's end, increasing your housing costs. Talk to your mortgage broker and ask her/him to go through different scenarios, i.e. lower prices with a higher interest rate or slightly higher price with a lower interest rate. If you don't have a mortgage broker yet, call Jane Robertson from CFC Mortgage, her number is (805) 701-5232.
Finally, keep in mind, while you are waiting for a possible drastic drop in home prices and if you are renting your current home, you are paying off someone else's investment instead of your own. It's good to be cautious, but if you find the perfect home with a reasonable price tag and your house payment is close to what you are paying in rent right now, why would you wait?
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