[bdcrazy]

I don't believe the main issue is knowing whether you are going to have to move soon. The main issue is buying a house and then shortly thereafter being laid off/fired/company went under/etc" but with jobs available from somewhere not close enough for the current house location to be viable. If its a couple years or so and house prices go up, its not too harsh of a financial impact to sell and move. If houses are falling, moving for job opportunities are that much less amenable.

[pannSun]

But the new house that you will have to buy will also be cheaper. On average, you are no worse off.

[thfuran]

What new house are you going to buy if you don't have the cash to pay off the underwater mortgage to sell your current house?