When the real-estate bubble bursts...

[Goosemaster]

...a nice penthouse in manhattan and a nice summer home in Grenwich Village.....

 

[MustISO]

Good luck with that. It'll take a nuke to drop the prices that low!

 

[conjur]

NYC prices won't collapse like other areas.

 

[amol]

And how much would those be?

When the housing bubble in CA bursts, we're probably going to upgrade to a 5000 sq ft house in our city ... 2x as big as our current house

Housing prices are GINORMOUS in So Cal

 

[KLin]

When the bubble bursts, I'm still going to be renting. I need to stop spending money, or find a job that pays more.

 

[Zim Hosein]

Originally posted by: MustISO
Good luck with that. It'll take a nuke to drop the prices that low!

I concur :beer:

<-- Begins fallout shelter hunting!

 

[Evadman]

Originally posted by: Zim Hosein

Originally posted by: MustISO
Good luck with that. It'll take a nuke to drop the prices that low!

I concur :beer:

<-- Begins fallout shelter hunting!

Done.

 

[z0mb13]

I wonder what the price correction would be in CA?

normal sized SFR going back to 500-600k ish as opposed to 800-1 mil?

 

[Tab]

When you mean burst, you mean everything sky rockets? Or plumets?

 

[LordSnailz]

Originally posted by: z0mb13
I wonder what the price correction would be in CA?

normal sized SFR going back to 500-600k ish as opposed to 800-1 mil?

I really though the correct would be that big, maybe at most 100K.

 

[amol]

Originally posted by: z0mb13
I wonder what the price correction would be in CA?

normal sized SFR going back to 500-600k ish as opposed to 800-1 mil?

We bought a house in 2001 at 649K

It's worth 1.15M right now ... it'll probably go down to 850K

 

[mchammer187]

you are not going to see a huge burst unless there is a huge recession

more likely the drops will be from 15-10% and a period of a few years with little to no growth in value

the only people that are going to be hurt by it are people that have bought multiple properties for profit

 

[Epic Fail]

Originally posted by: mchammer187
the only people that are going to be hurt by it are people that have bought multiple properties for profit

the kicker is if they financed them by taking out a mortgage on their current home at the inflated price

 

[ponyo]

The post bubble pop is usually worse than the initial pop. Pigs who missed the initial runup and watched in the sidelines rush in at the first sign of the drop and recovery only to get headfaked and get slaughtered with the rest of them. If this is really a bubble and it pops, you'll have plenty of chances later on to take your time and buy. The down market should last years, not months.

 

[Kipper]

Originally posted by: mchammer187
you are not going to see a huge burst unless there is a huge recession

more likely the drops will be from 15-10% and a period of a few years with little to no growth in value

the only people that are going to be hurt by it are people that have bought multiple properties for profit

You're forgetting the people who have been using their houses like ATMs and are up to their throats on debt...which numbers thousands of American households.

I expect that the drops will be more significant based on the overvaluation of any given property. 10%-15% is more of a corrective move.

 

[Slacker]

I would like to thank all of you in advance for giving me all of your money.

This is not a bubble.

Even if it is a spurt, it is not going to crash like people think.

Buy land, they aint making any more of it.

 

[Rudee]

As long as the demand exceeds the supply, prices are not going anywhere but up.

 

[ShotgunSteven]

Haven't you heard? The bubble will never burst, prices will go up forever! A nerd in ATOT told me so, and he obviously knows much better than people that have spent years of their life working in real estate and have seen it happen before.

 

Originally posted by: mchammer187
you are not going to see a huge burst unless there is a huge recession

more likely the drops will be from 15-10% and a period of a few years with little to no growth in value

the only people that are going to be hurt by it are people that have bought multiple properties for profit

:thumbsup: Exactly. So many people using interest-only mortgages to finance investments. They're dead when the screws tighten.

I wonder what it's going to do to the rental market?

 

[Kipper]

Originally posted by: Slacker
I would like to thank all of you in advance for giving me all of your money.

This is not a bubble.

Even if it is a spurt, it is not going to crash like people think.

Buy land, they aint making any more of it.

The trouble of a bubble is that you can't see you're in it for sure until it pops.

 

[MisterCornell]

There's no real estate bubble in the Midwest. There is an abundant supply of cheap flat land outside of all the cities that is continuously being developed. Real estate prices appreciate a consistent amount year to year. You can invest in real estate, and it will be low risk. Or you can buy a rather large house in a good school district for cheap.

 

[preslove]

The problem with the crash is that it will be accompanied/reinforced by high interest rates and a recession. With high interest rates you'll still end up with high monthly payments.