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Anybody else feel like these bidding wars are going to take us right back to the bursting of bubble?
IIRC, you live in Florida, and yes, the recent run-up in prices has been phenomenal - - - and I'm quite sure depressing to those in the market to buy. I was concerned about bubble pricing last year when I paid a little over $300k for a small 1br oceanfront condo in Miami Beach which at the time was the highest price paid for a unit in that building since before the crash. However, prices have continued to go up and similar units in that building have been selling this year for between $400k - $450k. In fact, an identical unit to mine, but on a lower floor with a worse view, just closed 2 weeks ago for $475k. It's getting ridiculous and certainly can't be sustainable. It's even tempting me to sell and essentially flip it even though I had no intention to do so when I purchased it.
IIRC, you live in Florida, and yes, the recent run-up in prices has been phenomenal - - - and I'm quite sure depressing to those in the market to buy. I was concerned about bubble pricing last year when I paid a little over $300k for a small 1br oceanfront condo in Miami Beach which at the time was the highest price paid for a unit in that building since before the crash. However, prices have continued to go up and similar units in that building have been selling this year for between $400k - $450k. In fact, an identical unit to mine, but on a lower floor with a worse view, just closed 2 weeks ago for $475k. It's getting ridiculous and certainly can't be sustainable. It's even tempting me to sell and essentially flip it even though I had no intention to do so when I purchased it.
Go for it!!
Thanks for making me feel vindicated. This one realtor I was trying to stay loyal to would show me a house, and say.. WOOOW look at this home, it's wonderful and a steal. I would look at her like she's out of her mind and tell her I KNOW this city and it's over priced for this part of town. She then said well, let's see what it last sold for.. look, it was sold in 2005 for $188K... I said yeah, and that's why it's a short sale now. My parents bought their house in a MUCH better and well respected neighborhood for about $120K, which when the market was down held it's value and there's is one of the lower priced houses in their neighborhood.
I'm tired of these realtors trying to talk me into paying more for a house that I know won't hold it's value... and people get so focused on "winning" they loose their rational thought.
this kind of stuff is what many who post here live for.. you won't get that much support from people here on this one... runaway home prices and easy profits... the good times are back! Here's to a healthy and thriving economy!
It's hard to say what will turn into a bubble and what represents the typical market cycles we see all the time. I understand what you mean, though. You have to remember that the value of anything is determined solely by a willing buyer and a willing seller with no other funky stuff going on. An appraisal or a CMA is nothing more than an examination of what a bunch of buyers and sellers have been doing lately. If you don't see the value in something, obviously you won't be the buyer of that property but if others keep buying at levels you won't pay, yourself, you do realize that you will not be a buyer in this particular market cycle, right?
If you look at a chart with inflation adjusted pre-bubble trends starting with around 1970 they are right about in line, which seems to say they jumped up way above where they should be during the bubble and dived down below where they should have been after the burst and are now settling in where they should be.
no buyer is under duress when agreeing to pay for a property, the buyers, not the brokers or sellers who set the market prices.
its supply and demand,
for many years the market has been saturated and still is in many areas. but money is cheap too, the low interest rates are attractive
it does a broker no good to inflate a price,,,if the property doesnt sell,,its all wasted effort,, and,,if the property is in fact priced much higher than it should be- then the appraisal from the bank will come in much lower,, (if using a bank)
so when brokers get blamed, its mis-placed- besides brokers dont set prices, sellers do
unique, or high demand properties might be slightly different- like waterfront
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