A $1 million starter home is now the norm in more than 200 US cities

[SWBTATTReg]

6. And I think you're right. Somewhere along the road, someone thought "Hey, flip these homes and make some

money, yada yada yada!".

Thus, the great chase was on, the desire to constantly buy houses, fix them up, sell them, repeat, repeat, repeat.

Problem is, eventually you are going to run out of buyers (always a lot of sellers) to keep the cycle going. Especially now when the cycle is starting to break in some areas, such as Florida where home prices have been tumbling (and there are other places too). Do you want to be one of those people who buys into the last stages of a constantly increasing pricing war on homes? No, for you'll get stuck before you know it with a higher mortgage than the house is currently worth, and then it'll take years and years for it to come back, price-wise. I know for it happened to me.

I didn't get caught w/ anything major, but I did want to move elsewhere, and then wham, I was shut out when prices in 2008 went down on housing. It took years for them to recover. But on one side of the fence, I did snag a foreclosed home, decent price, nice size just a mile from my old home so in a way, I did AOK.