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Unlike the last bubble, it seems prices for homes are based on real demand and low supply, unlike the 'flipper' bubble that burst. I don't see it bursting until the employers take the employees that need the housing away.
If you've got the equity to buy and build elsewhere now, might consider selling this year or next and renting a cheaper place until retirement. At least have a monster yard sale while you're thinking about it.
I am still doing a lot of improvements and I am as far out as I can go and still have a reasonable commute into my job - as it is, it is often an hour each way unless I leave before 6 AM and leave work for home before 3 PM.
So I am staying here for now.
When I retire, I won't have to commute, and my only requirement will be that I will be less than 100 miles away from my kids, probably somewhere on the east side of the coastal range.
As long as it doesn't get too heated it will be okay, and the last bubble took a lot longer to burst than most of the people warning about it predicted. I put off buying again and again, for years because of those warnings, and then, after so many years I thought they were crying wolf and so I started shopping. Just before I was getting serious (start to make offers, etc.), I got laid off just when the bubble burst - it was a good thing too as I would have been stuck.
The job market was good back then. It was the bubble bursting that set the job market into a tailspin.
Of course, all the market derivatives on real estate, the bad mortgages, people getting in over their heads thinking the market would always go up forever and never correct, were the real problems. A number of people learned a hard lesson from that, and yet, here we are, with the market heating up again.
If I got laid off tomorrow I could retire, but I would only be able to survive, not thrive like I want to, and I would not be able to leave a good inheritance for my daughter. So I keep working another five years and then sell.