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We bought our house in 2017 and it has more than doubled in price since then, so less than 5 yrs. We are in a area with tremendous job growth but these prices seem unsustainable, even with inflation.
OK, so you are saying houses will be cheap. OK, but with the low inventory I don't see that happening. I just bought a house and it was hard finding one.
Im just trying to understand what bubble people are talking about.
OK, so you are saying houses will be cheap. OK, but with the low inventory I don't see that happening. I just bought a house and it was hard finding one.
Im just trying to understand what bubble people are talking about.
This house of cards was built on debt and nearly free money passed out. As interest rates rise and the economy starts to go into recession, investors will have to dump inventory, and few will be able and willing to purchase as millions lose their jobs and people go into a major panic.
We saw this play out in 2008-2011 and we will see something similar in the future when the bubble bursts. I personally believe it will start popping within a year, but a lot depends on what the FED does, inflation and mortgage rates, and the overall economy.
Status:
"Senior Conspiracy Debunker"
(set 25 days ago)
2,004 posts, read 865,188 times
Reputation: 1998
Quote:
Originally Posted by Winterbeard
The cyclical nature of markets suggests a crash is always inevitable, wouldn't it be prudent to wait for that crash if you wanted the best bang for your buck? Perhaps people don't want to pay $400,00 for a 2/1 house in Florida? Is it a self-defeating mindset or is it a realistic mindset? Why put yourself in more debt now, when you could pay half in a few years time?
Everyone's financial situation is different. You need to know what debt comfort zone you can afford monetarily and mentally. Yes, as you admitted the cyclical nature of markets is always inevitable, so, that said if you can afford to get into the market, why wait?
Status:
"Senior Conspiracy Debunker"
(set 25 days ago)
2,004 posts, read 865,188 times
Reputation: 1998
Quote:
Originally Posted by Tall Traveler
I buy houses at bargain prices again.
If you are buying HOUSES, that means that you are a investor buying multiple houses. You are not buying a HOUSE for a home. Is this your strategy...trying to understand your statement?
If you are buying HOUSES, that means that you are a investor buying multiple houses. You are not buying a HOUSE for a home. Is this your strategy...trying to understand your statement?
I do both. I bought 3 houses in Phoenix metro during the last downturn and rented them out for years. I sold 1 of the houses in the last year (should have waited on that) and moved into 1 of the houses I bought.
Now I would like to buy something possibly in Sedona (my preference) or norther Idaho (wife's preference) the next time the housing market crashes, I've got cash, just waiting for the fall.
Status:
"Senior Conspiracy Debunker"
(set 25 days ago)
2,004 posts, read 865,188 times
Reputation: 1998
Quote:
Originally Posted by Tall Traveler
This house of cards was built on debt and nearly free money passed out. As interest rates rise and the economy starts to go into recession, investors will have to dump inventory, and few will be able and willing to purchase as millions lose their jobs and people go into a major panic.
We saw this play out in 2008-2011 and we will see something similar in the future when the bubble bursts. I personally believe it will start popping within a year, but a lot depends on what the FED does, inflation and mortgage rates, and the overall economy.
The 2008-2011 debacle is not the same as today. They aren't handing out money today as they were back then. Qualification is a little different. And you need to look at the projected growth of the economy. If some of these factors change, different story.
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