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With all the "cash" and "investor" buying, it just looks more of the same like 2005. The sellers are getting greedier every year and a new bubble is forming.
With all the "cash" and "investor" buying, it just looks more of the same like 2005. The sellers are getting greedier every year and a new bubble is forming.
I call baloney. Yes, housing prices are up in many, perhaps most, areas of the country from their abject lows of 2008/2009, but they have not come close to equaling the insane highs they reached just before the bubble burst.
There is another huge difference: banks are no longer lending to everyone with a pulse and they are no longer just accepting without verification what prospective buyers choose to put down as their "income". In addition, a down payment is now normally required.
There was an article in the Los Angeles Times within the last two weeks about how investors are no longer buying up housing at a frenzied pace, thus leading to a cooling of demand.
There is NO HOUSING BUBBLE! We are seeing a rebound in prices as the economy improves. To say things are like they were back in 2006 has to be a joke. Today, to qualify for a loan the applicant has to have loads and loads of collateral and proof that they can handle the debt. Prior to 2007 you could get an interest only loan while being unemployed.
A housing bubble like what happened in the 2000s will never happen again in the history of this country. That is a guarantee. Perhaps some other bubble will occur, but a housing bubble? Nope, America learned its lesson.
I think there is a bubble and hope that it bursts soon so I can afford to buy a house. The situation is unusual . Never before has the housing market been driven up mostly by investors paying cash. There are also too many foreclosure houses being hidden by banks in a long drawn out foreclosure process that keeps them off the market and prices high. Here in Florida the process can take 3 years. The problem is the housing prices are rising while salaries are not . That is a problem .
Looking at other countries they are already showing signs of a bubble bursting.
With all the "cash" and "investor" buying, it just looks more of the same like 2005. The sellers are getting greedier every year and a new bubble is forming.
I went to the bank, and asked for a loan, they QUALIFIED me. Without NINJA loans it doesn't seem a housing bubble like 2005 is possible.
This market is NOT being driven up by investors with cash! Sure there are some of those out there now, but by and large what I am seeing is just simply people/families out there buying homes to move into! And there are lots of them as the economy has improved and people are either back to work, or feeling confident they won't lose their existing job and so they are buying first homes or making that upgrade to the home they wanted to make over the last few years but couldn't for a variety of reasons.
Look at historical house prices. They go up every year...then they skyrocketed and crashed.
Now extend the amazingly straight line til you got the bubble, see it extend out to todays prices and.....nope. No bubble. A bit of a rebound, but I suspect they will settle now.
That historical graph is the reason I passed on a house in 2006, and bought one in 2012.
LOL at the responses ITT. Im sure you don't want to believe that there is because you are "smarter" than the market supposively, everyone is a Genius until you lose your *** but one thing you can't BS is the charts...
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