U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > General Forums > Real Estate
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
Reply Start New Thread
 
Old 04-24-2021, 10:27 AM
 
Location: Formerly Pleasanton Ca, now in Marietta Ga
8,191 posts, read 5,768,292 times
Reputation: 11787

Advertisements

Yes. Real estate has always been cyclical. Anyone who predicts the market will come down will eventually be right. Of course who knows when.
Taco soup is right , people have said it for years and those who held back waiting for the drop wanting to buy may be is a worse position and maybe never get a house.
One thing people forget is that if real estate drops, often it’s the whole economy dropping. Those who wait may find they have lost their jobs or see a decrease in income and may not be able to buy the cheaper homes.
I remember for years people told me to wait as prices would drop. I sat and watched as prices in my area went from 300k to 600k and finally pulling the trigger not listening to them any longer. I sold for 700k . Today the houses are over a million.
Rate this post positively Reply With Quote Quick reply to this message

 
Old 04-24-2021, 10:45 AM
 
1,109 posts, read 1,112,910 times
Reputation: 1903
Why do so many people immediately say "this isn't like 2008, therefore it isn't a bubble". Right, like nothing else can cause a bubble but bad lending practices.

OP: This is an inventory issue, and an asset inflation issue. It is being exacerbated by government interference in the markets and COVID.

Prices will come down, but you're going to have to wait a while.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 04-24-2021, 11:40 AM
 
Location: North Idaho
26,950 posts, read 36,227,223 times
Reputation: 57443
There are going to be a couple of contradictory influences. It is "wait and see" which one has the most influence.


There are billions of dollars being flooded into the economy. Inflation causes your money to lose it's purchasing power so that it costs more dollars to buy a similar item. Real estate is one of a very few hedges against inflation, which makes it a desirable purchase right now.



Capital gains taxes are being doubled, so expect money to leave the stock market and to be looking for other places to invest. And yet again, the hedge against inflation thing.


Demand might go down as the work-from-home workforce is called back into the office. In my area we are being overrun with people from the big cities who can suddenly live anywhere they want to live because they can take their job with them. If they must leave again because of their job, there will be more housing available, which usually lowers the price.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 04-24-2021, 12:02 PM
 
Location: Stuck on the East Coast, hoping to head West
4,547 posts, read 10,532,206 times
Reputation: 9528
In my area, there are a couple of things happening: 1) mortgage forebearance, 2) eviction moratorium, 3) property tax auctions have been put on hold in my county, 4) nobody is moving right now for fear. I know of several landlords who are trying to sell with tenants in place (because they can't eviction them).

Interestingly, the people that I know who are in forebearance aren't paying their property taxes. Interesting to see how that plays out.

I don't think you can time the market. We had made plans to sell in 2020 because that was part of our long term plan to relocate. So we did.

In my area, sellers are starting to refuse VA or FHA loans. If you can pay cash or go conventional, I think you're ahead of the game.

Finally, anytime someone says, ”this time is different”, I stop listening. Housing goes up and down. Eventually, it'll be a buyer's market again. And it is a buyer's market in other places (I have a list).

In the meantime, we're investing our cash in our businesses.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 04-24-2021, 01:24 PM
 
Location: Sandy Eggo's North County
3,722 posts, read 1,426,963 times
Reputation: 5366
Quote:
Originally Posted by otterhere View Post
How long can we expect these inflated prices to continue?
Until supply catches up to demand.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 04-24-2021, 01:28 PM
 
Location: Orange County, CA
443 posts, read 94,988 times
Reputation: 484
If there's low inventory everywhere, wouldn't it stay that way? If you sell you need a new place to go to. I would think the only way to increase inventory is to build more housing units.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 04-24-2021, 05:35 PM
 
Location: Indianapolis, East Side
2,271 posts, read 1,220,391 times
Reputation: 5725
Quote:
Originally Posted by otterhere View Post
I didn't want to buy sight-unseen before I retired and could travel; now I'm afraid I may be priced out! This is extremely depressing. I wish I had bought any ONE of the probably one hundred houses I considered in recent years. Even if I didn't want it now, I could have resold it for a tidy profit!
Where would you live, though?

If you have somewhere else to live, you might have ended up with a house you didn't need and that you'd have had to pay to get rid of.

Quote:
Originally Posted by MortonR View Post
Agreed. I have connections in Indianapolis and Milwaukee, neither of which are sunbelt locations or particularly desirable (except maybe Milwaukee if you ignore the winter) and they're experiencing similar increases in value and lack of inventory.


RM
Indianapolis has seen a LOT of improvement over the past several years. Part of the price increases reflect that. But the appreciation my house here has seen in five years took 15 in Denver.

Quote:
Originally Posted by aslowdodge View Post
I remember for years people told me to wait as prices would drop. I sat and watched as prices in my area went from 300k to 600k and finally pulling the trigger not listening to them any longer. I sold for 700k . Today the houses are over a million.
If I'd waited to buy a house in Denver, I'd have been priced out of the market there forever.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 04-24-2021, 06:33 PM
 
14,465 posts, read 7,387,254 times
Reputation: 28697
It's my belief that prices will level off but not crash. We're not in a lending banking crisis. It's just about supply and demand right now. As supply increases, prices will level off and not increase so rapidly. If a large amount of homes come on the market at the same time, prices may actually come down a little but not crash. There's no bursting bubble around the corner.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 04-24-2021, 06:46 PM
 
Location: USA
2,644 posts, read 1,078,355 times
Reputation: 7522
I sold a house in New England and couldn't believe how much money some one was willing to pay me for my forty year old house that had never been updated. The buyers said they were taking advantage of low interest rates. When I bought the house in the early 1980's, mortgage rates were 17%. Interesting to note that both the nominal and real current mortgage payment, even at the much higher dollar amount, will probably be less than I paid in the 1980's at the much higher interest rates.

Pocketed a lot of cash. Was planning help the economy recover by travelling. Maybe 2022?
Rate this post positively Reply With Quote Quick reply to this message
 
Old 04-24-2021, 07:19 PM
 
Location: Northern New Hampshire
30 posts, read 11,603 times
Reputation: 30
Lillie767, May I ask which state you sold your house and when?
Rate this post positively Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply

Quick Reply
Message:

Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Real Estate
Similar Threads

All times are GMT -6.

© 2005-2021, Advameg, Inc. · Please obey Forum Rules · Terms of Use and Privacy Policy · Bug Bounty

City-Data.com - Contact Us - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37 - Top