Is the housing bubble ever going to pop or am I stuck buying an overvalued home?
463182
That depends a lot on where you want to live.  Here in Southern CA, I don't think it will.  First of all, LA & San Diego are slowing due to the latest fed hike in interest rates.  But, because the demand is so much larger than the supply, the pressure for new, affordable homes is still strong.  Unfortunately, with the median price of a home at around $550,000, the income necessary to support monthly mortgage payments is above what most in the middle class make right now.  \n\nBut, you are starting to see some slowing and stagnation in less desirable markets.  That is where "the bubble" will burst, first.  Places like Cleveland, Louisville, Nashville, St. Louis, etc.  Watch as the interest rates go up, more houses will dump on the market because people with variable rates cannot afford the increases monthly.
935005
What goes up, must come down. In the USA, many people were buying homes, and now they can not get rid of them. My own brother has 4 homes in Florida for sale(Florida took the biggest hit) Nothing sold for a whole year. He is miserable. However, it did look good in the beginning when he was buying it 2 years ago...I would wait for the market to stabilize if I could
404779
Real estate markets vary state to state as taxes .Real estate usually raises and I really don't see the past history doing other wise.Banks are now raising rates .We had a nice rate on real estate loans for awhile.Now people are slowing down buying and rates are going up again.
10605
Hi I'm looking to buy a place also. You are somewhat younger then me, I'm 25. I think that a house is always a sound investment for people who can stay in one place for a long time. I would suggest talking to a real estate broker about your finances. But the real question you should ask yourself is, “At this young age am I ready to stay in this home for at least 5 years?” If the answer is no then I would continue to rent.
1020904
That is a possibility.  One thing that I can be pretty certain of, is that the increase will narrow the gap between rents and housing prices.  How this plays out will probably depend on the market.  In severely overheated markets like South Florida Condos, I think a bubble burst is pretty likely.  In areas that have seen below average appreciation, the change will be less dramatic.  \n\nThe toughest prediction to make is what will happen in desirable markets that have seen big increases.  Incomes will probably support some degree of increasing rents.  Will housing prices drop or flat-line is the question in these markets.
982935
The buy vs rent question is very popular. And truthfully only you will know the answer. Although here is my personal opinion. Rumors of the bubble popping have been circling for years. Not only that as long as million dollar brownstone's and other exceptional purchases will continue to happen you are correct the new york market is quite immune. Here is something o think about 5 years from now if you purchased you could have maid a nice sum of money for selling the property, or 5 years from now you will have paid some one else a nice sum of money with nothing to show. If you feel you can afford the housing expense then go for it. Homes are investments, apartments are liabilities.\nIf you like there is a rent vs own calculator on the following website so that you can make a more educated decision if you like.\nAlso feel free to log onto http://www.justgetaloan.net for a fast free pre-qualification with loan programs on low rates, great terms and service. Also fee free to contact me at 866 530 7300 ext 7305 or by email at jfreeman@justgetaloan.net
569717
I agree with OPM -- very thorough answer and a direct response to your question.\n\nI guess you are asking the question for general knowledge or for future use, because both parts of your question are inapplicable in today's environment.\n\nFirst, when do you expect interest rates to fall? Interest rates are still rising, and Bernanke just indicated another rate increase in the FOMC meeting minutes last week. \n\nSecond, have you taken into account that real estate prices have skyrocketed to possible unsustainable levels? For many, the question is not if, but when this bubble will burst, in which case interest rates will have nothing to do with it.
1166840
Resale homes in Fresno County have felt the pinch, as a month-to-month comparison shows prices falling from $275,000 in March to $270,000 in April.\n\nPersonally, I think that rising interest costs will force home prices downward, as speculators flee the market.  We're at a pretty high level of foreclosure rate and it's still climbing.  For the long term, buying property is always a good thing, but you need to make sure that you truly can afford it.  Just because you can qualify for a loan doesn't mean that you get to keep the property.  Remember that every person who has ever experienced foreclosure also qualified for a loan.\n\nYou seem like a forward-thinking young person who wants to have a good financial future.  Have you started your Roth IRA yet?  If not, put your money toward that, while you're young and can get time working on your side.  Click on my name and drop me a note if you want to learn a little bit about investing.  In the meantime, I urge you to read a book, "The Only Investment Guide You'll Ever Need" by Andrew Tobias.  It will give you a basic foundation on investing, including real estate.  Good luck!
1006129
Housing prices in Los Angeles County as of May were still rising, but at a much slower rate than in previous periods.  In most other parts of Southern California, housing costs are either flat or are beginning to drop (most notably Riverside, San Bernardino and San Diego counties).  In other parts of the country, housing is starting to decline.\n\nI believe that in LA County housing prices will follow the rest of the country and decline for awhile.  Unfortunately, much of that decline will be triggered by rising interest rates.  So you have to ask yourself: do you want your payments to go into a house that is declining in value, or to interest payments to the bank?\n\nLong term, it doesn't matter when you buy.  Housing will always rise long term.  Many people who bought during the housing boom in the early 90s in LA County were downside for years after the bubble burst in 1991-1992.  The decline bottomed out about 1997 and many people had recovered their losses and were in the black by 2000.  People who held on through 2005 make a killing.  If you're planning to stay for a long time, buy now.  You'll be able to enjoy your new home longer.\n\nIf you're planning to stay a short time and perhaps move to a bigger house in a few years, wait awhile.  Once you buy, you can't negotiate a lower price for the house, but you can always refinance your mortgage if interest rates decline.
1053816
You can always go up, but you can never go down......\nIf you want it for 100k, start at 90k\nUnless you are in a hurry to buy a place, take your time, and remember, there are plenty of houses to choose from
976477
Look at redbuggy answer of re-listing the house. sound like an honest thing to do, re-list and give the false impression that it a new deal. What other games are played with the MLS?? maybe listing the house once you have a buyer so you can brag that you sold a house in one day?? It is these and other games that have been played with buyers and the MLS that made the bubble.\n\nhttp://www.breakingbubble.com/index.htm\n\nYou need to find out what you can afford to walk away with out a lost, and bee happy because if you hold out you own and loss everything, sorry to say but if you look at your house as an investment there is no rule that you will make a profit.
808498
There won't be a crash, too many people want property as its the only real investment these days.  You should get on the ladder now before prices go up again.
1110783
There is no "standard", just what the market will bear.\n\nBut I just heard a figure you may find interesting.  There was a survey done recently by real estate people and the average monthly rent increase is expected to be 5.3%, about double what the average increase was last year.\n\nReason given is that interests rates are rising so home purchases are slowing.  More people are staying in apartments so demand is up.  Supply is also down as many apartments are being converted to condos.\n\nSounds like you did pretty well.
594868
Dear Ortiz,\nNow that the housing market is finally looking up, it's the perfect time to seek out a new place to live. This summer you need to shake off that "lucky I even have my folks to live with" mentality, polish up your shoes, and explore your living quarters options! There are fun, flexible, fantastic places out there just waiting for someone like you!\nNow, get out there and pound the pavement. Beat on some doors until you latch onto that incredible tree house or fort you always wanted! \n(I heard the Blackhawk area is a great place to find a cardboard box near a dumpster behind the pizza joint?)\n-Noah
820975
As you know, the Fed caused this bubble by lowering the interest rate right after the .com crash in an attempt to prevent a recession. It didn't take much of an interest rate increase to slow it down and let the true nature of the economy catch up with it.\n\nIt is going to get worse. A lot of homes are going to be on the market for less than what they were purchased for. If you want to stay in the industry, come up with some creative selling and purchasing schemes like they did right after the PC crash in the early 90s.\n\nNow is the time to create visibility for your company. Make sure everyone in town has a flyer and business card. Set your self up as an expert on how to deal with and plan for the changing situation. Give free seminars. Issue free written plans offering alternatives that can be picked up from you office or downloaded from your web site. Do not appear greedy. Become the nice guy expert. People will hunt you down when it is time. Become the hunted.
567839
Hi 90802!\nNow that the housing market is finally looking up, it's the perfect time to seek out a new place to live. This summer you need to shake off that "lucky I even have my folks to live with" mentality, polish up your shoes, and explore your living quarters options! There are fun, flexible, fantastic places out there just waiting for someone like you!\nNow, get out there and pound the pavement. Beat on some doors until you latch onto that incredible tree house or fort you always wanted!\n(I heard the LongBeach area is a great place to find a cardboard box near a dumpster behind the pizza joint?)\n-Kenny
904598
Yea right and get a full view of what is for sale?your are never given the full view of the market. Yep that is how they have shorted the market and drove up prices, with high returns that started a race of investors and flippers to even further jack up the prices, what do you know now we have a big bubble that is going to break and fast.\n\nThere is not a signal web site that have all the bank rope's, nor is the a web site that has all of what is of sale since there are several MLS and heck till lately there are many that would not even use the MLS they called that my exclusive listings.\n\nThis why why i think it is a good idea to have county ran MLS that are publicly assessable and mandatory for all property transactions. What a Thought to have a housing market with full disclosure that is fare and honest. Check out this web site it tells the full story