What do you think of the real estate bubble? is it real?
145291
I suggest reading "Are You Missing The Real Estate Boom?" by Davie Lereah\n\nReal Estate prices can't go to zero, unless there was a reason for people to flee that area or the interest rates shot up suddenly and much higher than what we could imagine, whatever the size of that area. It's not likely that interest rates will shoot up quickly. So ask yourself if the people of the area you are thinking about have a reason to leave the area suddenly.\n\nIf they don't, then there will likely be no real estate bubble in that area. \n\nReal Estate is not a short term investment and it's not as liquid as stocks. Stocks can go to zero but it's EXTREMELY difficult for real estate to go to zero.\n\nThe real estate bubble scare has been brought upon by stock brokerages and/or the media since they are tied together or invest in each other. Don't buy into it.\n\nReal Estate is a finite commodity. However, stock shares can be split forever it seems. Also real estate is unique, even if it's in the same complex, if a condo. Is each share of the same stock unique? No! \n\nSo in my opinion, yes real estate can drop by 10%, 15% or 20% but I wouldn't call it a bubble. The price will likely come back up in time, unless the area has been cursed forever. For less risk, buy in an area that's got potential, is near good schools, near shops, near transportation, has a good real estate history and near jobs.\n\nMy strongest suggestion if you are serious in buying is to speak to a good Realtor, (go to http://www.ReferredPro.com) to be referred to one, who can give you some guidance, especially since they work with lots of people in your shoes who are thinking the same thing and lots of others who are making money in real estate. Warning: friends don't necessarily give the best advice, even when they think they are.
746625
You should. Real Property is Real Property. The danger could arise if the property was overpriced.
383299
you think you hear about the housing market too much, try being a realtor!  :)
278429
it might be better to buy one later because of the fact that the real estate bubble is about to burst. prices should fall on property. plus, by then you'll get a better rate because your putting down payment.
620170
June 2006 money magazine says real estate prices in a few markets is going down but not in most areas. Many will still increase at the average. Prices must level off due to incomes not increasing that much and interest rates going up. Check out the mag article. I just subscribe to the magazine. Good luck. Its best to buy and hold for the long term. There are less deals available so find a few and keep them.
473548
It is a false bubble with more people losing their homes to reposessed then ever before in history, high prices is costing people millions of dollars with the rich coming out the winner, as usual. \n\nThe guy above is one sick puppy, needs medication fast.
802697
Heck i would like to find a complete list of all that is for sale. They have so many MLS and there are many that are not even listed, it relay shorts the market and drive up prices giving the impression that the is no supply, yet they have record sales, excuse me how can you sell something you do not have. Any ways this is how they made the bubble that is now breaking.\nGood luck in find a list much less a complete list, little do they the Realtors know they are a big part of driving business out of CA. Check out this web site.\n\nhttp://www.breakingbubble.com/index.htm
706989
Current inflation rates are a bit higher than the central banks would like to see, but not so high that they are affecting most peoples' habits.\n\nThe real estate market is actually experiencing a period of recession; many property values are dropping somewhat.  This tends to be somewhat localized though so it may or may not apply to your area.
458396
Our economy today is much more globalized.  I think that it is promising that more and more people own homes.  Home owners behave differently then renters in general.  They take more pride in their community and contribute more, thus helping the economy as a whole.  Besides, our population is still growing.  There are more people in the USA now then there were 10 years ago.  They have to live somewhere.  \n\nThe FED began to see what they called "frothiness" in the housing market and it is ONE of the reasons that they increased interest rates.  To slow the housing market.  The main reason was to control inflation and slow the economy, but housing was a concern.\n\nOur markets are safe for now.  It would take more than too many houses to bring it down.  Good question tho.
555753
Due to burst.  Real estate in way too many areas is way overpriced, most of it driven by Baby Boomer c**ksuckers who are buying up second homes and overinflating prices.\n\nAs the Boomers retire, they're going to figure out that without viable buyers for their pieces of crap, the prices are going to drop.
776211
I say that home price will drop to 40-60% of what they were last year. They really are not dropping they are correcting. From what you may ask a over inflated bubble that was made. Hear is how they made it.\nhttp://www.breakingbubble.com/index.htm
805765
i reckon so, im just waiting for a collapse, as are a couple of my pals who have sold and rented keeping the profit in a bank. interest is due to go up this week to 5%, and it will need to go up again before february. sounds good to me, lots of cheap houses that have been repossessed because silly people cant keep up with the payments when the fixed rate runs out and the payments increase by 40% a month.
600947
Living in Los Angeles, for a very long time now, I don't think the price will tank as yet. But we could be on the edge of slow down of price increases.\nThere is also a huge project in the planning stages for Grand Avenue. Not sure if it has been okayed as yet, but that sure to increase property values.\nIf you can swing the mortgage, which by the way, seems awfully high.\nIf you are just looking for a home, there are many other areas in Los Angeles, where you can buy a three bedroom home for much less than 1.2 Million.\nBut it may not have the cache of a downtown Condo.\nAnother thing to consider, is as of yet, downtown, lacks a lot of the amenities, that other areas around the city enjoy.\nNot all that many Supermarkets etc. \nBut if you are looking it as an investment, it could be a good deal. Not sure the price run-up, will be as fast, as in the past few years.\nDo more research first.
257397
Now is getting to be the perfect time to buy and hold. We just came out of a huge sellers market. Prices are not skyrocketing like we saw last year, and it is taking a lot longer for real estate to sell.\n\nNow is the perfect time to buy, interest rates are on the rise which really brings in a lot less buying competition, sooner or later interest rates will fall again, you can refinance and you will look like a genius, buying when everyone else was selling.\n\nBUY and HOLD, best wishes!!!
436242
I think most of the no money down, subject to, and lease option stuff is crap.  Perhaps after you have gained experience you can get deals no money down.  I lived in a college town also and saw the same thing happening in my town.  Rentals were everywhere.  I got started in real estate as a birddog.  I made $500 finding leads for an investor.  $10/ per lead he didn't have to close for me to be compensated.  There are only so many investment opportunities in one market though, so now after much debate I am becoming a realtor. Then I plan on being a commercial broker and THEN an investor. It is gonna take a while. I really think that you need the money/ experience/ connections/knowledge before getting into such a heavy endeavor with such thick legal implications and even scarier liabilities/consequences. If you don't know what you are doing you can get hauled off to jail for 3rd degree felonies with that no money down garbage.  Besides that most single family homes make next to no cashflow, especially with the way interest rates are going up. HARD WORK HARD WORK HARD WORK!
1016486
Here is an article I wrote about today's buyers market:\n\n2006 Year of the Buyer!!\n\nLets start with some facts from year 2005. Last year, we had a strong economy and we also enjoyed very low interest rates. Interest rates were the lowest in 2003, even though they have been creeping up each year gradually, the combination of low interest rates and strong economy fueled the housing boom; which seemed to have ended in 2005.\n\nFor 2006, seller’s need to keep in mind that the party is over. If you were holding onto your property in 2005, hoping to make more money in 2006, I got news for you: “You missed the boat.” But there are many things you can do still to enjoy the profits from the sale of your home like fixing up your home, replace that old carpet, repaint the house, etc, etc.\n\nI hope my readers (sellers) don’t think that I am trying to put them into panic mode. I am just trying to make you understand that in most areas you cannot hope to sell you home for the same price you could have sold in the middle of 2005. Prices have dipped a little and they are taking longer to sell but we still have a healthy normal market, which is where we really needed to be. Last couple of years were not normal markets, it was mainly a seller’s market but it got out of control in some areas of the country where they saw too much appreciation for their own good.\n\nI am NOT telling you that the market “bubble” is going to burst but it is definitely deflating and this my friends, will give buyers a very good chance to get a good deal on a home.\n\nPurchasing a home is an excellent investment, the Government subsidizes it, we still have low interest rates and over all Real Estate is the best investment you can ever make in your life.\n\nIf your are currently thinking but have not yet decided to buy a home, you should know that by the end of the year interest rates will be close to 7%, therefore you need to be very well prepared and do your homework early.\n\nIf you are currently thinking bout selling your home, understand your local market and do the fix ups and repairs needed to entice homebuyers and remember that buyers don want to spend more money on a home after they bought it.\n\n*********************\n\nYou can also find an article about the so called "buble" in the Real Estate market I wrote back in November 2005 and still stands\nFollow this link http://jrealestate.blogspot.com/2005/11/real-estate-market-bubble-burst.html
627180
Well right now it's starting to become a buyer's market. Houses are not selling like hotcakes right now. They are staying on the market longer. This is an advantage for you because prices can be negotiated in your favor. I would wait a few more months and see where the market is then because it hasn't quite changed totally.