Buying in the market high or wait

[Tim W.]

Hey guys, Im new here and haven't invested yet. That being said, Im in the DFW area of Texas where we are experiencing a high in the real estate market. Companies are coming to Texas and people are following. That being said, houses are selling for way more than I believe they should (way more than Im willing to pay). Im hoping to sell a property I have been sitting on with the prior hopes of building on. Im hoping to have a couple hundred thousand dollars to start investing but Im not sure if that is the right thing to do.

Prices are high and properties are still selling within a week or two. New home construction is booming right now. There is a HUGE development going in north of the DFW airport that is probably 100 acres or more of $550,000-650,000 houses going in. It seems like they cant build fast enough. I honestly don't know how people afford these houses. I make enough money that I "should" be able to buy a house in that range, but know that is just asking for trouble.

Looking ahead, I feel like there is going to be a market swing. Housing is crazy right now and our economy seems to be doing "too well". I feel like there is going to be a downturn here in the next year or so. Im seeing more and more articles in newspapers with people predicting a crash.

So, I have been listening to the podcasts going backwards. Just finished Show 131 w/ Serge Shuhkat when it hit me. He said he's not going to invest in anything in his market right now because prices are way to high. This dilemma has been bugging me for the last couple months and when I heard his answer on the podcast, it hit me in the face. I think hes right and it validates my fears.

So, what would you do? Im not interested in investing in other markets. I have a control issue and want to see and follow my own properties. Plan on managing them myself. Any suggestions?