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Old 06-04-2014, 09:13 PM
 
Location: The People's Republic of Austin
5,184 posts, read 7,275,400 times
Reputation: 2575

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Quote:
Originally Posted by ksoviero View Post
History is our greatest teacher, and one needs only to look to the '80s ('70s?) to see this has happened before. The real estate of Austin has always shown a penchant for ebbing and flowing over time.
Austin prices have come down twice in the 30 years I've owned property here - both times because the job market declined, not because of "overreactions by developers".
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Old 06-04-2014, 09:18 PM
 
1,588 posts, read 2,315,024 times
Reputation: 3371
The most likely culprits that will slow the rise in RE prices will be rising property taxes and rising interest rates.

Neither of these will be cataclysmic or "correcting" just a slowly applied brake.

Now if we are all drinking toilet water in a few years this could be a different conversation.
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Old 06-04-2014, 09:32 PM
 
Location: Austin, TX
16,787 posts, read 49,046,364 times
Reputation: 9478
Quote:
Originally Posted by ksoviero View Post
History is our greatest teacher, and one needs only to look to the '80s ('70s?) to see this has happened before. The real estate of Austin has always shown a penchant for ebbing and flowing over time.
It took the last major recession to make home prices dip slightly in the last five years.

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Old 06-04-2014, 09:34 PM
 
2,185 posts, read 6,432,372 times
Reputation: 698
Quote:
Originally Posted by ksoviero View Post
History is our greatest teacher, and one needs only to look to the '80s ('70s?) to see this has happened before. The real estate of Austin has always shown a penchant for ebbing and flowing over time.
But not anytime soon. People are still moving here and will continue to move here for a long time. Prices are not coming down anytime soon. Why is it so hard to realize this?
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Old 06-05-2014, 07:45 AM
 
Location: Austin
4,105 posts, read 8,286,495 times
Reputation: 2134
Because investors are driving up prices as well as demand, and investors can always cash out. If prices doubled next year would you attribute 100% of the increase to supply and demand? If they tripled, would you? It's true that people moving here increases prices but other factors do as well-- the proportion of increase those factors are each responsible for is what's in question.
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