The concern is that if you buy a house on 12/31, then the markets, including housing markets, respond negatively to the fiscal cliff, you could lose value from your home. In some markets like San Francisco (we bought in Dec of 2011), there's still plenty of price to fall. In markets that haven't recovered, I'm not sure how much value there is left to lose.
If you're planning on staying put for 15 years, this probably doesn't matter as much. Austerity measures don't work, but we may need to try them to figure that out.
Your comment "..Austerity measures don't work, ..." makes me laugh and cry at the same time. What website are we on anyway? It is a credit scoring site that determines your potential financial strength based upon your credit to debt ratio. If you truly believe what our present administration is doing then why do you care what your FICO score is? Just keep borrowing and spending money and everything will be fine in your world... only your world!
My boss thinks we'll go off the fiscal cliff and recommended that I not close on a house prior to Dec. 31 because of it. I have no idea how much a difference this would make to me. I guess the idea is taxes will go up, stock values will go down and I'll be poor. I'm already poor!
Does anyone here have some useful insight into this conundrum?
yeah, don't believe everything you hear......