What is the rental market like for similar condo's?

"The future is already here -- it's just not very evenly distributed" William Gibson

How high can interest rates get before you can no longer afford the mortgage payments?

We have met the enemy, and he is us — Pogo

Have you got a market for fixed rate mortgages ? they are very desirable when inflation expectations are high. About timing the bottom, check this

Pierre

Here are some links that will probably be helpful:

Price and inventory trends.

Affordability measures.

Cinci actually looks incredibly affordable.  Prices are only 2.3x income, and mortgage payments at only 76% of rents.  The percentage of income requirement look very, very good.

Prices do look like they're falling pretty quickly, but inventories are falling, too.  It's not a bad time to buy, I'd guess.  The city seems to be in good shape.

Be nice to America. Or we'll bring democracy to your country.

Do you have a stable job or stable income - ie do you expect to be able to make the mortgage payment on an ongoing basis even if prices still go down? Can you get insurance to cover your payments if you're unemployed? (that's very common in France)

Do you plan to stay in the area for long (if not, and prices go down, you might have to take the loss)?

In the long run, we're all dead. John Maynard Keynes

Get married, you bounder!

Qui vit sans folie n'est pas si sage qu'il croit.

If the mortgage would be half the prevailing rents as you say this is an easy call, buy it.  There's no way it goes below 70k, say, even in a worst case scenario.  The 5.5 fixed 30 year is a historical aberration absolutely worth taking advantage of.  8-9% fixed rates were very common for most of the last 60/70 years and over the three decades you'll come to appreciate how good a deal you got in this era.  

The risk of loss on a need to sell and dropping property values is not that huge in terms of real dollars.  If you eat 20k on it that's really not so horrible.

What are HOA fees?  mortgage vs. average rent is a great way to look at the value of an apartment/condo purchase in the US.  Rents have a way of not falling, you know...

Why don't you come to St. Paul/Minneapolis, MN and buy my house?

The Hun is always either at your throat or at your feet. Winston Churchill

The link to the condo unit looked great and for less than 100,000 US$, wow! That should be roughly 70 thousand Euros. Looks like a nice unit. What's 800 sq feet in sq meters by the way?

(Did you know that for that price, you don't get anything bigger than a converted chambre de bonne in Paris center, not exceeding 12 sq meters floor area, nothing like what's shown in the link at all. Last August, an American friend was visiting and was thinking of buying a pied à terre in Paris and when I showed her what her 150,000 US$ could buy in Paris 10th district--  which isn't even a posh district in Paris, a studio measuring not more than 18 sq meters, she almost fainted...)

If and when you buy, think of an important factor too: location, location, location; building history too should count, etc.

Since you are going for fixed interest, I think there's less risk of buying this year but Jerome's remark is also an important factor when buying on a loan: "Can you get insurance to cover your payments if you're unemployed? (that's very common in France)"

Posted by: Mrs 3rd Column

All such decisions are ultimately based on personal needs.

I am looking to buy in Canada. We are definitely waiting a few months. Then again Canada is still in a housing boom.

(And for those who are selling in Minneapolis - no, I am not moving to Minneapolis. Don't even ask :)

If you wait three months and things don't work out how disappointed are you going to be?

If you buy now, and in 3 months you loose 50% of your investment how disappointed are you gong to be?

A scenario that has not been talked about is - if official credit dries up, will there be a corresponding increase of home owners who will hold the mortgage?

_{aspiring to genteel poverty}