What neighborhood are you going to live in when the housing bubble pops? (Seattle: sale, 2013)

[DutchessCottonPuff]

Oh , if I am just dreaming here , I guess a small place in West Seattle .

[flyingsaucermom]

Originally Posted by DutchessCottonPuff

Oh , if I am just dreaming here , I guess a small place in West Seattle .

Same here. I still love the vibe there. Probably stems from it being the first Seattle neighborhood I stepped into.

[leastprime]

Beacon Hill

[HuskyDawg]

Any neighborhood not in Seattle city limits.

[noah]

Originally Posted by Blondebaerde

"...The large price gains might seem familiar to the gains of the previous up market of 2004-2007, but the environment is much different, and that is why we are not headed toward a housing collapse.

Lending Requirements

(..)Lending requirements are much more stringent now than what they were prior to the fall of the housing market.
Previous lending practices allowed people to get into homes with risky debt-to-income ratios, low credit scores and undocumented incomes. They called this sub-prime lending. A large part of why the housing bubble burst 10 years ago was due to people getting into mortgages they were not equipped to handle, which lend to the eventual fall of sub-prime lending. Currently, the average credit score over the last 12 months according to Ellie Mae was 724. During the days of sub-prime lending people were funding loans with scores as low as 560! This, coupled with many zero-down loan programs and the risky terms mentioned above left many new homeowners with little to no equity. When you have little or no equity it is very easy to just walk away.

Sounds like salesman talking points. The reality is that only a credit score of 580 is required to get a mortgage now (look up FHA) and 3.5% down. They say tight credit but that was more like in 2012 then today. Ratios can go pretty high now. Granted, many in Seattle aren't in that category but don't mistake that means the entire metro doesn't have these buyers. On top of that when you have a 25% rise in income but a 100% rise in values it means ratios are getting stretched for new buyers and for renters, hard to get around the economics.

When in the last 20 years did price increases nicely slow down but continue. You've had large increased followed by hard times (2000, 2008).

[HardShell]

when do you think the current house bubble will burst? I will get my cash ready ...

[Commonproject]

"Bubble" won't burst unless Amazon goes down, which is nowhere close to happening anytime soon

[pnwguy2]

Originally Posted by Commonproject

"Bubble" won't burst unless Amazon goes down, which is nowhere close to happening anytime soon

I tend to agree, but with some caution. Remember the 2008 bubble was not a local event, it was national, though it impacted different regions in different ways. I predict the next one will be similar, but the timing is unknown.

[Thom52]

ah, another Wishful Thinking thread.


The entire world is getting a lot more crowded. People have to live and play somewhere.

The rift in Classes gets wider. Those with more will keep paying more for the places to live that they consider to be nicer.

Good luck on that Bubble Popping thing.

We took the money and ran to a cheaper place that has some tradeoffs that we figure are worthwhile for the financial and less-crowds advantage. Maybe if we hung onto our Kirkland house, it would have continued to skyrocket in price....along with the crowds pushing that price.

Of course where we moved, people are complaining about traffic and too many people. That is sort of a World issue. Heck, we recently visited a "remote" section of Northern CA coast and I was shocked by how much more crowded it was since being there last a couple years ago.

People need to go somewhere. The competition is fierce.

[pnwguy2]

Originally Posted by Thom52

ah, another Wishful Thinking thread.


The entire world is getting a lot more crowded. People have to live and play somewhere.

The rift in Classes gets wider. Those with more will keep paying more for the places to live that they consider to be nicer.

Good luck on that Bubble Popping thing.

We took the money and ran to a cheaper place that has some tradeoffs that we figure are worthwhile for the financial and less-crowds advantage. Maybe if we hung onto our Kirkland house, it would have continued to skyrocket in price....along with the crowds pushing that price.

Of course where we moved, people are complaining about traffic and too many people. That is sort of a World issue. Heck, we recently visited a "remote" section of Northern CA coast and I was shocked by how much more crowded it was since being there last a couple years ago.

People need to go somewhere. The competition is fierce.

Bend for lower housing costs? Really? Don't mean to 2nd guess that decision, but there are certainly cheaper areas in the NW. Ellensburg, Yakima, Tri-Cities, Walla Walla, Hermiston, Pendleton, LaGrande, Lewiston/Clarkston, on and on.

Bend is the eastern playground for the rich of Oregon.