Home prices can't go straight up forever. But this probably isn't a bubble

[The Heretic]

Home prices can't go straight up forever. But this probably isn't a bubble

Home prices are climbing at the fastest pace in history, eclipsing even the boom in the days leading up to the Great Recession. Bidding wars have become common, many are forced to pay all cash and some bids are coming in $1 million over asking.

www.cnn.com

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[Alexx1401]

If the POTUS was GOP this story would be on a 24/7 loop warning that all was going to crash and day now. When this does crash, and it will, if Joe is still at the top they will blame Trump.

 

[The Heretic]

With some exceptions, the government, especially whomever is in the WH, is not responsible for the housing market.

That said, the government did have a hand in the 2008 housing bubble, but there was plenty of blame to go around.

 

[bigbearbear]

When I came to the US over 21 years ago, I lived in the Bay Area of CA, the famed silicon valley. I remembered people kept saying how housing prices cannot go up forever and the bubble will burst etc etc. After 21 years, bubble bursting, dot-com crashing and on-going virus pandemic, house prices are higher than ever.

So yeah......in my experience, the "bubble" might burst and what not, but house prices will continue to go up and stay up. They might not go up in price as quickly later on but they will continue to creep upwards.

 

[The Heretic]

When I came to the US over 21 years ago, I lived in the Bay Area of CA, the famed silicon valley. I remembered people kept saying how housing prices cannot go up forever and the bubble will burst etc etc. After 21 years, bubble bursting, dot-com crashing and on-going virus pandemic, house prices are higher than ever.

So yeah......in my experience, the "bubble" might burst and what not, but house prices will continue to go up and stay up. They might not go up in price as quickly later on but they will continue to creep upwards.

Well, prices can drop. They certainly did in 2008-2010. But at that point there was a glut and a LOT of properties were over-priced due to speculation, and all the foreclosures/etc. caused an even bigger glut. It was a good time to buy if you had the $ - it was when I helped my kids buy their first house (bank owned).

I bought my property at a low, in 2012, just before the prices were starting to go back up and when the previous owners wanted to retire and move to Hawaii, so I got a decent price. Previously it had been valued at $150K+ more than I paid for it.

Current prices are increasing faster than before the bubble burst and IMO many properties are overpriced, but there is not a glut and there will probably be some cooling off of people choosing to wait, but the prices probably won't go down, maybe just level off some. I want to sell, but I've still got some work to do on the property. If I sell I may just travel for a while, storing my stuff while overseas, then come back, buy some land, hopefully at a good value, and build on it.

I see where even the land/houses well outside any reasonable commuting distance, have inflated prices. I guess that is to be expected, but my bet is that they won't sell near as well (i.e., they won't get the prices they are asking) as properties that are less than an hour commute to their jobs. Some people like me (retired) would like those properties, but even many retired people want to be within 30 minutes of a city, whereas I do not. I can wait to buy if I have to.

 

[albin25]

According to my financial advisers at, Grabyor, Anquels and Takeit, , ...
.... "Things go "heads", things go "tails"... that's why we charge commissions every time you flip that coin." and, "At least real estate always goes up...'till it doesn't."

(Housing seems high ... but then, who ever thought we'd live in a world with $80,000 pickup trucks )

 

[CamoDeafie]

Prices going up. Anyone watching the value of the American Dollar going down? Wages is not raising by as much as inflation is. The higher the dollar amount, the less it buys these days