Housing bubble

Intel
VKWd14

Go to company page Intel

VKWd14
Feb 20 23 Comments

We are looking to purchase a larger home. Last summer, prices went up around 15-20%. Now, I see new constructions homes have increased their price listing by another 5-10%. Inventory for resale is low but I can clearly see them being listed higher which is likely to go up in the summer. Whoever said the market is going to stay the same.. I don’t see that happening. AT ALL.

I am getting flashbacks of the 2008 financial crisis. We clearly have a housing bubble. It’s accompanied by inflation and some compensation increases across the board. I am worried about paying 20-25% more for a house now and when the bubble bursts, I am left with a home worth less than I paid for.

What are your thoughts? Are we in different times now?

TC: 160K
YOE: 8
Location: MCOL

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 TOP 23 Comments
  • No burst coming.. The fed has established precedence of printing money and they'll do so again.
    Feb 20 3
  • CGI
    not_high

    Go to company page CGI

    not_high
    If u consider past 100 yrs, 2008 was not so long ago. And the only crisis whr housing went downwards. Factors culminating in 2008 were due to institutions not doing their job properly. But this time, factors aren't artificial & can be backed by econ principles - low interest rates, supply chain hit, inventory shortage, baby boomers, WFH leading ppl to buy better/bigger houses. Most of the ppl buying houses currently hv good credit scores. And lessons learnt in 2008 shield the market against anything similar happening, at least not within such a short span.
    Feb 20 4
    • Everyone keeps repeating the same mantra about supply and demand and it being different this time because of this.
      In South-East Florida there was a saying that everyone is a real estate agent. Now everyone is a house flipper. I see the houses and condos bought up and put on sale at a double to triple price.
      This isn't sustainable. It is different this time for sure, this is gonna work, it's a whole new paradigm - buy a house and sell it later on for double - smart... until it's not.
      Feb 21
    • The population has increased a lot in last decade
      A lot of ppl refinanced the home last year and comfortable
      Supply chain issue and high lumbar cost delaying the new construction and pumping up the cost
      So low inventory more demand, anything in this state only goes up until supply improves fed rates might not have much effect
      Mar 18
  • Amazon
    hjhvg

    Go to company page Amazon

    hjhvg
    Since you are not a home owner you will always feel the bubble will burst. If you truly believe in it, DON’T BUY.
    Feb 20 2
  • New
    ANTW77

    New

    ANTW77
    There's some interesting dynamics at play here. The Fed printed money which caused everything to go up including salaries and stocks, but now it's raising interest rates which has caused stocks to decrease - but it hasn't hit salaries and housing yet. The question is when? If people can borrow less money because interest rates are higher and they can't cash in their RSU's, that should hit housing. It hasn't yet because salaries are still increasing and the housing market is slow to react, but the big question is how long can salaries keep going up while the public markets get hammered? Once that changes, then we could potentially see a housing crash. The Bay Area is one of the areas least likely to be impacted because it has some of the most financially responsible people in the country, but it would still get hit.
    Feb 21 2
    • Google
      jtu98c

      Go to company page Google

      jtu98c
      There is a problem with your logic. QE has been going on since 2010. Salaries have been increased that much for a while until last year.
      Feb 22
    • New
      ANTW77

      New

      ANTW77
      QE has been propping up the economy since that last recession, but they printed money at unprecedented levels during the pandemic. Just look at any graph of fed assets and you'll get an idea of how significant it was.
      Feb 23
  • GE
    gcFG23

    Go to company page GE

    gcFG23
    Don't listen to anyone else just buy the most expensive home you can afford, trust me
    Feb 20 2