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Bubble In Housing Market

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timd354

Elite Member
Joined
Jan 11, 2008
Professional Status
Certified Residential Appraiser
State
Maryland
View attachment 32391

Diana is tweeting JP Morgan's David Kelly...can't find link yet. CNBC usually lag video,

but rumblings are around
http://www.cnbc.com/2017/06/09/rent-dont-invest-your-money-in-a-home-mortgage-says-a-new-report.html
Here are a couple of quotes from the article:
Owning a home used to be a great way to build wealth, but that equation is turning. It may, in fact, be more lucrative to invest your money elsewhere

more potential owners should favor renting and reinvesting in a portfolio of stocks and bonds

Great advice...because there is no chance that the equities markets are in the midst of a bubble, right?
 

Peter LeQuire

Elite Member
Joined
Jan 3, 2005
Professional Status
Retired Appraiser
State
Tennessee
BITD it made sense to borrow money to make money - returns were available that were higher than the cost of borrowing.
 

AMF13

Elite Member
Joined
Jan 24, 2002
Professional Status
Certified Residential Appraiser
State
California
I still see properties selling for cash in some areas in the 7 figures.
I guess those people think high zoot real estate is a good place for their cash.
Even costing well above a decade ago highs. :huh:

Maybe they know something that I don't. And not just that their accounts are fatter. :sleeping:
 

Terrel L. Shields

Elite Member
Gold Supporting Member
Joined
May 2, 2002
Professional Status
Certified General Appraiser
State
Arkansas
Here I would say building costs are rising, especially concrete and finish work. Older homes recovered, new homes at 100% but more profit for builders as lot prices are maybe 20% less than in 2012.
 

Restrain

Elite Member
Joined
Jan 22, 2002
Professional Status
Certified General Appraiser
State
Florida
Down here, many of the surviving builders are setting on an inventory of lots. Lot values are about 10-15% of what they sold for before 2008, but the economics are such that spec new home construction is now taking place. There is a bubble in Miami condos but this is normal. This is cyclical.

We RE still getting cash sales but this is due to people selling their homes and reinvesting in retirement homes. The big bubbles are in the northeast and in the west coast where incomes cannot make home payments.
 

Meandering

Elite Member
Joined
Feb 26, 2006
Professional Status
Real Estate Agent or Broker
State
Pennsylvania
Total existing home sales, completed transactions that include single-family homes, townhomes, condominiums and co-ops, increased 1.1% to a seasonally adjusted annual rate of 5.62 million in May. This is down from a downwardly revised 5.56 million in April.

This sales pace is an increase of 2.7% from last year, and the third highest pace over the past year, the report showed.

The median existing home price for all housing types increased to $252,800 in May, passing up last June’s $247,600 as the new peak median sales price, and increasing 5.8% from May last year. This marks the 63rd straight month of year-over-year gains.

Total housing inventory rose 2.1% at the end of May to 1.96 million existing homes available for sale, but is still 8.4% lower than last year’s 2.14 million. Unsold inventory rests at a 4.2-month supply at the current sales pace, down from 4.7 months last year.

Properties stayed on the market an average of 27 days in May, down from 29 days the month before and 32 days last year to the shortest timeframe since NAR began tracking in May 2011. Short sales were on the market the longest at a median 94 days in May, while foreclosures sold in 48 days and non-distressed homes took 27 days.

https://www.housingwire.com/article...me-sales-rise-median-home-price-hits-new-high
 
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