Do you think real estate in America is bubbling up again?
Asked by
JLeslie (
65714)
May 10th, 2019
from iPhone
Do you think the bubble is going to burst again anytime soon?
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11 Answers
I’m not sure about real-estate, but the United States might be in for a trillion dollar student loan default coming soon.
What appears to be bubbling up is the affordability issue around housing. The pressure to devise another shell game financing scheme is growing ever more irresistible. Be ready for the unveiling in order to get in on the ground floor with the chance of grabbing some money and getting out before the collapse.
I think it is very location specific. certain areas are hot, like SF and NYC and others are not. In my area, for examples, a lot of New York families are looking for second homes and driving prices up. I don’t see an overarching trend for the whole country.
I was wondering about that. The dystopian economics now defining the country seem to grow ever more obtuse. I mean there’ve always been disparities in the price of real square footage between Manhattan and Poughkeepsie, but those prices are now exaggerating those disparities beyond reasonable recognition. I tell you the truth birdie, I’m almost grateful to be old.
^^ I think that often these day.
I don’t see a bubble like 2008. At that time anyone with a pulse got a loan for 2–5X what they could afford. Not the case now, people are doing well enough to drive up cost because demand is high and inventory low in many places. In certain areas like California international investors, hiring boom from tech companies and “trendy cities” are driving up cost to insane levels. Here in plain Jane East Tennessee housing is up roughly 20% in the last few years.
The rich, particularly the foreign rich are parking their money in American real estate. In this town there are tons of vacant brand new empty apartments that local renters simply cannot afford. They’re snatched up by foreign absentee landords many of whom turn them into air b&b units.
I see it, in my city. Small 80 year old houses are being sold at asking prices over $350,000.
In my neighborhood, they’re trying to sell like over 30 houses. The closest to me, is a one bedrooom. It’s not brick. Built in the early ‘40s. Oh, and it has a cemetery on two sides. They want over 350k! The house next to it, is probably close to being condemned.
They’re constantly building giant condos, and huge neighborhoods. It seems impossible to be sustainable.
The mortgages back in the mid 2000’s contributed to the bubble, but I think any time there is a rise in prices, especially if it’s from investors and second homes, the market gets precarious. That’s my concern I guess. I don’t like prices to go way up, because they often go way down eventually.
If it gets hard to afford a house, or investors worry flips won’t pay off, or that rents won’t cover the investment, if they start to pull back, housing sakes slow, the housing supply goes up, and prices fall.
It might just be what I’m feeling in my pocket of the world right now. I looked up my house I owned back when I lived in Delray Beach, FL, and I was shocked to see it lists for less than what I sold it for in 2005. It still hasn’t come completely back, while in my current part of Florida the houses are completely recovered and the prices are accelerating.
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