I currently live with my parents and plan on buying a house in the Metro Detroit area sometime in the next 2-3 years when I am ready to move out. I am currently not quite ready to move out yet as I do not have enough savings and do not have a good enough job to support myself yet, but will likely be ready in 2-3 years. This will be a house to live in that I can call my own place that I plan to have paid for when I move into it. I have no interest in buying and flipping properties to make money, but rather as a place I can call my own without having to pay rent or mortgage. In fact I hate rising home prices and believe it punishes people who want to save to pay cash for a house. My target price range is from $100K to $130K. I plan on paying cash for it as I hate any form of debt. The type of home I am looking to purchase is a small starter brick home from 900-1400 square feet in good condition in an ok to decent neighborhood built within the last 30 years. It does not have to be a great area, but cannot be a bad area either. Schools will not matter as I intend to live on my own and will not have children. Now I ask this question because I want to plan my finances to ensure my existing savings [[about $110K) do not lose any purchasing power in relation to home prices between now and when I am ready to buy a house in 2-3 years. So do you foresee significant price increases in the next 2-3 years in the Metro Detroit area. Or is it only very small increases like 1-3% per year or flat or even falling prices? And I guess the most important part is being able to buy the kind of house I am looking for based on my description above for somewhere between $100K and $130K in 2-3 years from now. If home prices rise a little, but as long as they do not rise enough to prevent me from getting the type of home I want in the price range of $100K to $130K, I will be ok.
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