::Poll:: How fvcked are you going to be when the real estate bubble bursts?

[HappyPuppy]

Originally posted by: SampSon

Originally posted by: HappyPuppy

Originally posted by: SampSon

Originally posted by: Triumph
It's happened before, and it'll happen again. I've talked to coworkers who bought in the late 80's/early 90's when the market was doing this same thing. Crazy growth with no end in site. After it burst, alot of them were upside down on their townhouses/condos. Being upside down on a mortgage is not a good position to be in! It wasn't until the last couple of years that they recovered. And these guys are in the northern Virginia/DC metro and northern New Jersey/NY metro areas. Not exactly what you'd call economically depressed areas.

Right now it will go on, at least in this area, because there are jobs and there is a demand for housing. But it will reach a point where starting salaries will have to be way higher than what they are now to attract people to the area. As it is, young professionals making good money are stretching their budgets to the absolute maximum (50% of gross income spent on the house), just to get into the smallest houses available. Unless salaries increase by 20% a year, something has got to give.

The savings and loan scandals and price fixing practices of lenders/appraisers made that happen.
It won't be that bad again.

Another kiddie who hasn't studied the history of real estate.

Nope, never studied the history of real estate when I was in school for my state appraiser and realtors license.

Sure the bubble will pop in the same areas it has in the past. The same thing will happen with thoes areas in the future too. Thoes areas represent a small minority of the country. Focusing on them has no point.

But, feel free to endow me with all your illustrious real estate experience. I'm sure you're an oasis in a desert of ignorance.

You having a realtor's license speaks volumes.

 

[thedarkwolf]

Originally posted by: deftron

Originally posted by: thedarkwolf
Paid $42,500 4 years ago. Don't think it can really go down much.

Should have went with the double-wide ... they hold their value better..

Double-wides are to expensive. Had to buy an real house instead.

 

Originally posted by: HappyPuppy

Originally posted by: SampSon

Originally posted by: HappyPuppy

Originally posted by: SampSon

Originally posted by: Triumph
It's happened before, and it'll happen again. I've talked to coworkers who bought in the late 80's/early 90's when the market was doing this same thing. Crazy growth with no end in site. After it burst, alot of them were upside down on their townhouses/condos. Being upside down on a mortgage is not a good position to be in! It wasn't until the last couple of years that they recovered. And these guys are in the northern Virginia/DC metro and northern New Jersey/NY metro areas. Not exactly what you'd call economically depressed areas.

Right now it will go on, at least in this area, because there are jobs and there is a demand for housing. But it will reach a point where starting salaries will have to be way higher than what they are now to attract people to the area. As it is, young professionals making good money are stretching their budgets to the absolute maximum (50% of gross income spent on the house), just to get into the smallest houses available. Unless salaries increase by 20% a year, something has got to give.

The savings and loan scandals and price fixing practices of lenders/appraisers made that happen.
It won't be that bad again.

Another kiddie who hasn't studied the history of real estate.

Nope, never studied the history of real estate when I was in school for my state appraiser and realtors license.

Sure the bubble will pop in the same areas it has in the past. The same thing will happen with thoes areas in the future too. Thoes areas represent a small minority of the country. Focusing on them has no point.

But, feel free to endow me with all your illustrious real estate experience. I'm sure you're an oasis in a desert of ignorance.

You having a realtor's license speaks volumes.

Appraising is my job. I know the market. The realtors license was just a little kicker I got while maintaining my state appraisal license.

So speak your invaluable volumes of knowledge, or just sit down and shut up like you should.

 

[NikPreviousAcct]

Originally posted by: Viper GTS

Originally posted by: Nik
It never will. Real estate is a required standard in life.

Say what?

Viper GTS

Don't mind me, I'm uhtarded. I just meant to say that people won't ever NOT need to live SOMEWHERE, so real estate will always be a valuable commodity

 

[Mookow]

Originally posted by: Nik

Originally posted by: Viper GTS

Originally posted by: Nik
It never will. Real estate is a required standard in life.

Say what?

Viper GTS

Don't mind me, I'm uhtarded. I just meant to say that people won't ever NOT need to live SOMEWHERE, so real estate will always be a valuable commodity

Valuable, yes. But the question is how much it will be valued

 

[virtueixi]

Sampson, what do you think the market is going to be like in NY in the next year. Hasn't the appreciation fallen to 1.4% the last quarter. Thx!

 

Originally posted by: virtueixi
Sampson, what do you think the market is going to be like in NY in the next year. Hasn't the appreciation fallen to 1.4% the last quarter. Thx!

Depends on what area of NY.

 

[virtueixi]

Originally posted by: SampSon

Originally posted by: virtueixi
Sampson, what do you think the market is going to be like in NY in the next year. Hasn't the appreciation fallen to 1.4% the last quarter. Thx!

Depends on what area of NY.

Say queens, specifically rockaway beach. My rents bought a 500k condo right on the beach.

 

Originally posted by: virtueixi

Originally posted by: SampSon

Originally posted by: virtueixi
Sampson, what do you think the market is going to be like in NY in the next year. Hasn't the appreciation fallen to 1.4% the last quarter. Thx!

Depends on what area of NY.

Say queens, specifically rockaway beach. My rents bought a 500k condo right on the beach.

I'd have to look at the area. Generally waterfront holds value extremely well.

 

[virtueixi]

Originally posted by: SampSon

Originally posted by: virtueixi

Originally posted by: SampSon

Originally posted by: virtueixi
Sampson, what do you think the market is going to be like in NY in the next year. Hasn't the appreciation fallen to 1.4% the last quarter. Thx!

Depends on what area of NY.

Say queens, specifically rockaway beach. My rents bought a 500k condo right on the beach.

I'd have to look at the area. Generally waterfront holds value extremely well.

hehe, thats good to know. thx

 

[DaWhim]

chart

housing price went up 65% since 1997 for US, a little part of the country can't do that. the US economy didn't grow that fast. I don't know what to call that, if it is not bubble, anyone?

I do believe the bubble will burst soon. when it does, you may have your equity wipes off and probably worth less than what you pay for.

 

[imported_Mike]

Q from the curious...would a great time to buy be right after a bubble burst? Or could there be mini bubbles and the value continue to decrease?

 

[DaWhim]

Originally posted by: CheapArse
Q from the curious...would a great time to buy be right after a bubble burst? Or could there be mini bubbles and the value continue to decrease?

the best time will be when the baby boomers hit retirement, you can wait for a bigger drop in house prices. but i guess that will be another decade.

 

[Nitemare]

Supply and Demand....

The Supply isn't going to increase so the demand can only increase...

 

[Jfrag Teh Foul]

Not voting. I just built my home last year, but will retire and probably die here. Don't care what the market does. I do know this though, there is a limited amount of property to be pwned. Doubtful that supply and demand will let it dive much, if ever.

 

[z0mb13]

if there is a bubble, and if it bursts, people with interest only mortgages will be fscked..

as of right now, there are tons of people barely making their interest only mortgage payments...

 

[paulney]

Bought a townhouse 2 yeras ago. It went up 120k in value over that time. I'm expecting that when 5 ar jumbo loans start balooning, there'll be quite a few foreclosures in Bay Area, and then we could act and snatch a nice big house

 

[ShotgunSteven]

Originally posted by: Nik
It never will. Real estate is a required standard in life.

You do realize that it has happened in the past, and is going to happen again? It cycles.

California will be one of the triggers, as the astronomical prices are limiting the new money coming in. Another trigger will probably be a Fannie Mae debacle which will make Enron and WorldCom look like the corner 7-11 going under.

 

[paulney]

Where can I read more about Fannie Mae troubles?

 

[ShotgunSteven]

Originally posted by: paulney
Where can I read more about Fannie Mae troubles?

Do a Google News search. I've been keeping track of articles in Forbes, the Wall Street Journal, et cetera, and it's even trickling down to my little hometown newspaper now.

 

[sandorski]

HomeOwners will suffer most(Interest Rates can only rise from here), but there will likely be indirect effects on everyone else. We could always hope that it won't burst, but just stagnate instead.

 

[SuperTool]

I think the bubble will burst in a few years, right before it's time for me to buy a house. Now I am happy to rent. Rents have almost halved in the Silicon Valley since the tech bubble burst, while housing prices kept going up.

 

[Darien]

Maybe then can I afford a house in California.

 

[kranky]

Supply does increase - they keep building homes farther away from the cities, where there used to be farms. I think a big factor is going to be gas prices. When they get to $3+/gallon, these homes that are far from the cities aren't going to be as attractive.

Originally posted by: aphex
The townhouse i bought for $140k in September is now worth approx $235k, i sure as hell hope not in the next 2 years

You are Bubble Boy! (in real estate terms)

 

[cavemanmoron]

i bought my house 5 years ago
and its worth a little more than what I paid for it.