Another Housing Bubble?

[albatros43]

Do you think we're in the middle of another housing bubble? Admittedly I hadn't looked at home prices in years but recently we've been looking around at houses and everything is expensive, as in 2008 levels and higher it seems.

I guess if you sell high and buy high it's somewhat of a wash, but I don't know how I feel about it. There is little to no new construction and everything we look at and take an interest in seems to go under contract within a week tops. It's kind of BS. You shouldn't have to make a decision that quickly.

 

[GeauxLSU]

Hard to say but you are right. Sell high buy high is a wash. Only a problem obviously if you have to buy high and sell post crash. We bought in 2000. We are JUST back to where I'm comfortable we'd at least get what we paid and perhaps another 10% (at most). That sucks for a 16 year 'investment'.
If it's a voluntary move what difference does it make if you lose equity in your current home or new home?

 

[albatros43]

Hard to say but you are right. Sell high buy high is a wash. Only a problem obviously if you have to buy high and sell post crash. We bought in 2000. We are JUST back to where I'm comfortable we'd at least get what we paid and perhaps another 10% (at most). That sucks for a 16 year 'investment'.
If it's a voluntary move what difference does it make if you lose equity in your current home or new home?

Well, we're in our "first" house. Of course tastes change and you figure out you want different things. We're looking for more space and an upgrade. The buy high, sell high is sort of a wash, but less so when you're looking at roughly double the house. We plan to buy and then sell, so worse case scenario is buy high and subsequently sell low.

 

[GeauxLSU]

Well, we're in our "first" house. Of course tastes change and you figure out you want different things. We're looking for more space and an upgrade. The buy high, sell high is sort of a wash, but less so when you're looking at roughly double the house. We plan to buy and then sell, so worse case scenario is buy high and subsequently sell low.

Whatever you do just make sure you are in a position to have the house paid off well before retirement.
I don't regret upgrading. Just realize it "costs" more than just the additional payment.

 

[batoncolle]

Yes we are most definitely in a housing market bubble, at least in certain areas. I just sold and took complete advantage of it. But I have been watching houses in 6 different counties, and it is outrageous right now. There are houses that are just way overpriced for what you get, and any house with competitive pricing won't even last on the market for a week. And new construction is even worse.

 

[boxer90]

I saw an inexpensive property lately that I loved, but it was already sold before I could really get the USDA process started.

A lot of property in the West Point/LaGrange area is high. It drops the moment you hit the Alabama border, but I don't want to live in Alabama as I'd have to change everything as per documents and what not.

Might be selfish of me but I wouldn't mind another "crash" because it might be an opportunity to finally get a good deal. Not really interested in the house to be honest, but a land loan requires a lot more BS and having a home in the country to fall back on sounds like a good plan.

 

[Alphacpa]

We are absolutely not in a housing bubble in the local Atlanta market. No where close. Try to get a mortgage right now and it is still a pain. There are no liars loans to be had a cross the country. There are small pockets of rapidly rising values in Colorado and a few in Californication but nothing to worry about. We are adding new residents every day here to the tune of over 100,000 per year. I expect steady price appreciation along with a modest recession later this year not severe enough to offset price appreciation No rush due to high mortgage rates either as rates will be low through most of 2018 based on latest implied forward rate report which reflects rate expectations by those smarter than me.

 

[albatros43]

We are absolutely not in a housing bubble in the local Atlanta market. No where close. Try to get a mortgage right now and it is still a pain. There are no liars loans to be had a cross the country. There are small pockets of rapidly rising values in Colorado and a few in Californication but nothing to worry about. We are adding new residents every day here to the tune of over 100,000 per year. I expect steady price appreciation along with a modest recession later this year not severe enough to offset price appreciation No rush due to high mortgage rates either as rates will be low through most of 2018 based on latest implied forward rate report which reflect rate expectations by those smarter than me.

So you see it as a simple supply and demand issue within the "metro" area? Our agent would list our house for about 32% more than we paid in 2004. Granted, we've done a lot to the house but that's still considerable appreciation for a house not worth what we paid for it in 2008.

 

[Bushwick100]

Do you think we're in the middle of another housing bubble? Admittedly I hadn't looked at home prices in years but recently we've been looking around at houses and everything is expensive, as in 2008 levels and higher it seems.

I guess if you sell high and buy high it's somewhat of a wash, but I don't know how I feel about it. There is little to no new construction and everything we look at and take an interest in seems to go under contract within a week tops. It's kind of BS. You shouldn't have to make a decision that quickly.

I bought my house in 2007, it was the beginning of the housing crash($365,000), every thing in my neighborhood was $325,000-$550,00, now a small home in Suwanee where I live in NEW construction cost $460,000-$675,000, I think that ALLOT of these builder's have lost there minds, but I don't know Crap ABOUT construction. My neighbor bought his house in 2007 , also for $252,000 and just sold it by himself for $315,000 in 4 days he had 4 offers in 4hrs.

 

[GeauxLSU]

I bought my house in 2007, it was the beginning of the housing crash($365,000), every thing in my neighborhood was $325,000-$550,00, now a small home in Suwanee where I live in NEW construction cost $460,000-$675,000, I think that ALLOT of these builder's have lost there minds, but I don't know Crap ABOUT construction. My neighbor bought his house in 2007 , also for $252,000 and just sold it by himself for $315,000 in 4 days he had 4 offers in 4hrs.

I don't understand how new construction makes it. A house in the neighborhood burned. To rebuild would have costs 20% more than they could have sold it for.