Is there a housing bubble where you live?
I have been thinking a bit about this lately. I know where I live the property was undervalued for a long time. It is still a pretty good value compared to most inland so cal areas and any beach city area.
However lately it seems people are getting a little stupid and crazy with their home pricing. I will see homes that have been sitting on the market for a few months because they are priced too high and they will relist them at even higher prices. I would say the average home out where I live is moving into the $165k range which is very reasonable for California. Hoever now I am seeing people ask $189 for fixer 3 bedrooms almost less than a year later. That to me feels like some irrational exuberance.
I guess I am just wondering what the rest of you see in your parts of the country. I know real estate always rebounds, especially in California so it isn't much of a big deal. I wanted to buy one more house to rent out, well maybe two but I am afraid of the approaching top of the market and being overextended.
What do you guys think?
Nick
However lately it seems people are getting a little stupid and crazy with their home pricing. I will see homes that have been sitting on the market for a few months because they are priced too high and they will relist them at even higher prices. I would say the average home out where I live is moving into the $165k range which is very reasonable for California. Hoever now I am seeing people ask $189 for fixer 3 bedrooms almost less than a year later. That to me feels like some irrational exuberance.
I guess I am just wondering what the rest of you see in your parts of the country. I know real estate always rebounds, especially in California so it isn't much of a big deal. I wanted to buy one more house to rent out, well maybe two but I am afraid of the approaching top of the market and being overextended.
What do you guys think?
Nick
Comments
Will it pop? "irrational exuberance" al a dot.bomb? I don't think it's the same situation. If rates go up a lot it might but there's still no sign of inflation. If the Fed fscks up and has to jack up rates due to unseen inflation then that could hurt. Bye bye Greenspan.
I heard on TV that too many people have variable rate loans. So if they rate does skyrocket that could hurt the economy. What effect it has on housing prices I couldn't say.
I'm looking at buying a small house with my parents, small fixer-upper in the city, partition that sucker, two apartments, tenants (with jobs!) and let that beatch pay for itself for the next 20 years.
[ 03-17-2003: Message edited by: Matsu ]</p>
I live in Chester County, PA. In the suburbs oif Philadelphia, a decent four bedroom colonial is going for upwards of $250K...probably closer to $300K. I moved a closer to Lancaster and bought for less than $200K for the same thing. My home's value has gone up about 10% in the past year alone.
I think there will be a deflationary period in Real Estate wehn the rates go up.