Is there a housing bubble where you live?

Posted:
in General Discussion edited January 2014
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

Comments

  • Reply 1 of 6
    scottscott Posts: 7,431member
    Well? Some parts of the country are deflating. As long as rates are low people can afford to pay more so prices can go up. In my area I know several people that now own two houses because they bought a new one to move into and found they could afford the payments on two. So why sell when property is the best investment going these days?



    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.
  • Reply 2 of 6
    matsumatsu Posts: 6,558member
    Any metropolitan area is a safe bet, populations aren't shrinking, there'll always be renters to let you hang onto a property untill the value is where you want it to be.



    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>
  • Reply 3 of 6
    outsideroutsider Posts: 6,008member
    I don't know. Here in southern Connecticut houses have gone from ~$170K-$250K for an average 3 bedroom to $200K-$280K. But they are on the decline again. My real estate agent told me that i could sell my house for $180K now (I bought at $149K). But not for long.
  • Reply 4 of 6
    trick falltrick fall Posts: 1,271member
    The New York Metro area is pretty ridiculous. Houses that five years ago were going for 180k are now going for 320k and that's lower end of things. I'm no expert, but in my opinion real estate is usually the last thing to go down. I bet you'll be able to buy a house cheaper next year. I predict a triple whammy on the market around here over the next two to three years...higher taxes, less consumer income and higher interest rates.
  • Reply 5 of 6
    sdw2001sdw2001 Posts: 17,038member
    Prices may be cooling a bit...but not much.



    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.
  • Reply 6 of 6
    buonrottobuonrotto Posts: 6,368member
    In Central New Jersey, the new money belt around NYC, the real estate is simply outrageous. My parents own a small (1200sf) house just outside of Trenton that went for about $200k. New homes start at 300k and jumpto 500k quickly even over old brownfield sites. If my parents' hose were in Princeton, it would cost $750k- $1million.
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