advertisement
Forums

The Forum is sponsored by 
 

AAPL stock: Click Here

You are currently viewing the Tips and Deals forum
is there a real estate bubble?
Posted by: mattkime
Date: August 27, 2014 10:05AM
real estate prices are high. is it a bubble?

discuss!



Options:  Reply • Quote
Re: is there a real estate bubble?
Posted by: ztirffritz
Date: August 27, 2014 10:11AM
Prices are getting back to where they were about 7-8 years ago. Back then it was a bubble because too many people were borrowing more money than they could afford assuming that they could sell the house they just bought for more than they paid for it. Eventually, that has to end(and it did). I think now, people are being a bit more realistic, but people are still asking for more than their homes are worth because they paid more than the home was worth. They're underwater on the their mortgage and patiently waiting for the market to catch up to what they need to recover their investment. It will level out eventually.



**************************************
MacResource User Map: [www.zeemaps.com]#
Options:  Reply • Quote
Re: is there a real estate bubble?
Posted by: Robert M
Date: August 27, 2014 10:17AM
Matt,

High? Definitely not. One bedroom co-ops in my area were averaging $300K to $350K just a handful of years ago. The price was fair considering it's a very nice area with excellent schools, near major airports and public transportation. Now, owners are lucky to get between $200K and $250K.

Prices are definitely not high. If anything, they are now artificially low. I'd say there was a bubble but it burst a handful of years ago and the market hasn't recovered yet. Not by a long shot. I wouldn't expect to get $325K to $350K for a one bedroom co-op now but the price should definitely be in the $250K to $300K range.

Robert



Edited 3 time(s). Last edit at 08/27/2014 10:35AM by Robert M.
Options:  Reply • Quote
Re: is there a real estate bubble?
Posted by: decay
Date: August 27, 2014 10:33AM
depends on the area.

Brooklyn is NUTS.



---
Options:  Reply • Quote
Re: is there a real estate bubble?
Posted by: freeradical
Date: August 27, 2014 10:54AM
Quote
decay
depends on the area.

Brooklyn is NUTS.

Yes...location, location, location...
Options:  Reply • Quote
Re: is there a real estate bubble?
Posted by: billb
Date: August 27, 2014 10:58AM
Quote
freeradical
Quote
decay
depends on the area.

Brooklyn is NUTS.

Yes...location, location, location...
+1



The Phorum Wall keeps us safe from illegal characters and words
The doorstep to the temple of wisdom is the knowledge of one's own ignorance. -Benjamin Franklin
BOYCOTT YOPLAIT [www.noyoplait.com]
[soundcloud.com]
Options:  Reply • Quote
Re: is there a real estate bubble?
Posted by: JoeH
Date: August 27, 2014 10:59AM
Yes, location is very important when talking about housing prices. There are many places where prices are still depressed from the bubble prices of 7-8 years ago. In some others the prices have been partially propped up by large banks and other investors buying up foreclosures at prices higher than they would get in auctions to owner occupants. The investors hope to recover the difference by renting for now and then make a profit in a few years by selling when the housing market fully recovers.
Options:  Reply • Quote
Re: is there a real estate bubble?
Posted by: NewtonMP2100
Date: August 27, 2014 11:02AM
no.....just a baubble.......for now............



_____________________________________

I reject your reality and substitute my own!
Options:  Reply • Quote
Re: is there a real estate bubble?
Posted by: 3d
Date: August 27, 2014 11:11AM
Quote
billb
Quote
freeradical
Quote
decay
depends on the area.

Brooklyn is NUTS.

Yes...location, location, location...
+1

In my area, a beat-up, un-renovated, 60 year old, 3bed, 1BATH, boring cape-style house on a 50x100 plot goes for a half mil. If you go three blocks South the same exact house will go for 350k. If you go three blocks North the same exact house will go for 650k. Location, location, location.
Options:  Reply • Quote
Re: is there a real estate bubble?
Posted by: Robert M
Date: August 27, 2014 11:35AM
3d,

And the taxes will be just as crazy! That boring 60 year old, 3bed, 1BATH, cape-style house on a 50x100 plot can have taxes in the X range, that same house 3 blocks south with a much lower price tag may have taxes in about the same amount or just a small amount less and the house three blocks north could have taxes in the same range or be thousands dollars more!

And, to top it off, those three blocks can make the difference between which police department handles the area and the school district. Kids at one address could go to a school in X district and kids at one of the other houses must go to Y district.

Robert
Options:  Reply • Quote
Re: is there a real estate bubble?
Posted by: GGD
Date: August 27, 2014 11:46AM
They're practically giving them away in Buffalo.

[hereandnow.wbur.org]
Options:  Reply • Quote
Re: is there a real estate bubble?
Posted by: ztirffritz
Date: August 27, 2014 11:59AM
China tried to stop their bubble by limiting people to investing in a single property...in China. So now they're buying Detroit, block by block. What could possibly go wrong?



**************************************
MacResource User Map: [www.zeemaps.com]#
Options:  Reply • Quote
Re: is there a real estate bubble?
Posted by: Steve G.
Date: August 27, 2014 12:01PM
Quote
GGD
They're practically giving them away in Buffalo.

[hereandnow.wbur.org]

For many years, I have looked longingly at the grand Victorian houses in Buffalo. With the carvings, spaciousness, stained glass and other upper-tier late Victorian pleasures, it would be lovely to live in one.
The main drawback is they are impossible to heat and maintain. I know of at least one huge ornate house on Grand Island that solved the problem, they have their own gas well and has been properly weatherproofed.





Edited 1 time(s). Last edit at 08/27/2014 12:06PM by Steve G..
Options:  Reply • Quote
Re: is there a real estate bubble?
Posted by: illustratton
Date: August 27, 2014 12:19PM
I've lived in a Victorian 2 1/2 story, the house has some renovation, but no added insulation and the original hot water heat. It does have a new set of storm windows, but the original wood/ single glass window without any special seals. The worst winter months here in Nebraska (where it does get very cold) my heat/water bill runs under $300. (maybe 3 months) other wise $80.

Now the thing I do miss is central air, but mainly for the noise the 2 window units make. I also have a couple window exhaust fans upstairs that help circulation. Summer electric bill $150, and I'm running lots of lights, computers, servers, security cameras, etc.

So it's not impossible, if you want it, do it!



Edited 1 time(s). Last edit at 08/27/2014 12:20PM by illustratton.
Options:  Reply • Quote
Re: is there a real estate bubble?
Posted by: DavidS
Date: August 27, 2014 12:28PM
According to the Fulton County Board of Assessors here in Atlanta, not only has the market recovered, but they claim my house is worth 100% more than last year.

In 2013, they also said it was also worth 100% more than 2012. They did accept my appeal back to reasonable levels when I asked if anyone there would like to buy it for the appraised amount. 6 months later, however, they've jacked up the appraised value again to the exact same number they claimed in 2013. I'm waiting for this appeal to go through now.

Appealing a property tax valuation used to freeze it for 3 years. Evidently, they did not do that this time around.
Options:  Reply • Quote
Re: is there a real estate bubble?
Posted by: cbelt3
Date: August 27, 2014 12:32PM
NYC is going through major insanity in residential pricing right now. Manhattan is out of sight, and now the other boroughs are getting eaten up too. Pretty soon you'll have to be a King to own a home in Queens.

Definite Chinese investment problem.

Cleveland, OTOH... I can buy a 2 bedroom bungalow close to where I work for $5 K. Of course I'd have to put in plumbing and siding and pay the back taxes, but still. And it's not a terrible neighborhood. I have a coworker who bought up two foreclosed houses another neighborhood away from this one for about $25K each, and had his sons refurbish them in exchange for the title.
Options:  Reply • Quote
Re: is there a real estate bubble?
Posted by: Black
Date: August 27, 2014 12:52PM
Quote
decay
depends on the area.
Exactly-- OP doesn't make sense for most of us. Prices in my 'hood are about where they were at around 1998.




New forum user map 8/2015: [www.zeemaps.com]
Options:  Reply • Quote
Re: is there a real estate bubble?
Posted by: Robert M
Date: August 27, 2014 12:57PM
3d,

Something we both forgot to mention is that around us, a three block distance can mean the difference between living in Nassau County and living in Queens (aka one of the five boroughs of NYC). Throw that into the mix and it becomes all the more confusing to people.

Robert
Options:  Reply • Quote
Re: is there a real estate bubble?
Posted by: Black
Date: August 27, 2014 01:00PM
Quote
DavidS
According to the Fulton County Board of Assessors here in Atlanta, not only has the market recovered, but they claim my house is worth 100% more than last year.

In 2013, they also said it was also worth 100% more than 2012. They did accept my appeal back to reasonable levels when I asked if anyone there would like to buy it for the appraised amount. 6 months later, however, they've jacked up the appraised value again to the exact same number they claimed in 2013. I'm waiting for this appeal to go through now.

Appealing a property tax valuation used to freeze it for 3 years. Evidently, they did not do that this time around.

Is there new construction nearby in the same property class that's messing with the comps?




New forum user map 8/2015: [www.zeemaps.com]
Options:  Reply • Quote
Re: is there a real estate bubble?
Posted by: mattkime
Date: August 27, 2014 01:21PM
this thread is a reminder regarding where i live - in a rapidly gentrifying neighborhood. I've been here 10 years and have been lucky that i've been able to afford to pay the rising rents but i can tell my time to move on isn't too far off.

tons of great info. i'm fantasizing about being neighbors to many of you.
Options:  Reply • Quote
Re: is there a real estate bubble?
Posted by: colonel panic
Date: August 27, 2014 01:24PM
The bubble here in Brooklyn keeps getting bigger. I thought we reached our peak back in 2006, but prices continue to rise. The value of our place has increased by 40% just in those past eight years.



"They don't call me Colonel because I'm some dumb a$$ army guy" Colonel Homer J. Simpson
Options:  Reply • Quote
Re: is there a real estate bubble?
Posted by: (vikm)
Date: August 27, 2014 01:59PM
I dunno if it's a bubble or not, but prices are back to being crazy here in LA and it's highly unaffordable for far too many now. I don't think it's a bubble, sadly or can't think of the one or two things that are fueling it like before. I mean, sure interest rates are still relatively low, but money isn't just being handed out as easily as it was before. Maybe just a case of the major rich buying up investment properties?

"LA is the US's Most Unaffordable Place For Renting and Buying"

[la.curbed.com]
Options:  Reply • Quote
Re: is there a real estate bubble?
Posted by: Filliam H. Muffman
Date: August 27, 2014 02:39PM
There will be another crash if rates jump up more than 4.5%.



In tha 360. MRF User Map
Options:  Reply • Quote
Re: is there a real estate bubble?
Posted by: Lux Interior
Date: August 27, 2014 03:32PM
Quote
Steve G.
For many years, I have looked longingly at the grand Victorian houses in Buffalo. With the carvings, spaciousness, stained glass and other upper-tier late Victorian pleasures, it would be lovely to live in one.
The main drawback is they are ...

...in Buffalo.


burnout smiley
Options:  Reply • Quote
Re: is there a real estate bubble?
Posted by: NewtonMP2100
Date: August 27, 2014 03:49PM
you would need A LOT of dishwashing liquid to make that bubble........



_____________________________________

I reject your reality and substitute my own!
Options:  Reply • Quote
Re: is there a real estate bubble?
Posted by: DavidS
Date: August 27, 2014 04:51PM
Quote
Black
Quote
DavidS
According to the Fulton County Board of Assessors here in Atlanta, not only has the market recovered, but they claim my house is worth 100% more than last year.

In 2013, they also said it was also worth 100% more than 2012. They did accept my appeal back to reasonable levels when I asked if anyone there would like to buy it for the appraised amount. 6 months later, however, they've jacked up the appraised value again to the exact same number they claimed in 2013. I'm waiting for this appeal to go through now.

Appealing a property tax valuation used to freeze it for 3 years. Evidently, they did not do that this time around.

Is there new construction nearby in the same property class that's messing with the comps?

There is new construction but our house is nowhere in their class. In fact, the house 2 doors down is the exact same floor plan (plus they have an elevator). Their property value has not been reassessed or increased since we all moved in 5 years ago. It makes no sense, as with many things in Fulton County.
Options:  Reply • Quote
Re: is there a real estate bubble?
Posted by: Steve G.
Date: August 27, 2014 04:53PM
Quote
Robert M
3d,

Something we both forgot to mention is that around us, a three block distance can mean the difference between living in Nassau County and living in Queens (aka one of the five boroughs of NYC). Throw that into the mix and it becomes all the more confusing to people.

Robert

Actually, besides taxes, there is a difference, the zoning for house plots in Queens is much smaller than in Nassau County. With a brief drive you can see a big difference in the neighborhoods.
Options:  Reply • Quote
Re: is there a real estate bubble?
Posted by: Robert M
Date: August 27, 2014 05:30PM
Steve,

Very true, though, the plots in some areas of the city limits are far larger than the plots in other areas. The kicker is that all of the stuff can change dramatically in the span of a block or two. Even something as simple as snow removal changes. In one local area, they do a fantastic job of removing snow. 1/4 mile away in another local area, snow removal is horrid. Then, a short distance from there in the city limits, it varies from horrid to surprisingly good.

Robert
Options:  Reply • Quote
Re: is there a real estate bubble?
Posted by: GuyGene
Date: August 27, 2014 06:05PM
matt, aren't you in NYC area? I study real estate markets a bit, and it seems there are only a couple of places in America where prices are stable or rising. NYC, San Francisco, etc., maybe Miami. I think America is going to kind of follow Japan's real estate market. Bubble burst in Japan about 1991, hasn't gone back since. I don't think America will go back to, say, 1990-2005 levels in most areas. NYC excluded, for a while anyway.



That old man - he don't think like no old man...
Now I wouldn't want to be within 400 - 500 yards of one of them nuclear bombs when it goes off! WW1 Vet Old Man
"He's pinned under an outcropping of rock. Lucky for him, the rock kept the dirt from burying him alive."
If idiots could fly, this place would be an airport. And I'd be a TSA agent.
A bonified member of The Mystic Knights of The Sea, George P. Stevens, President. Andy Brown, Treasurer, Algonquin J. Calhoun, Legal Consultant.
Options:  Reply • Quote
Re: is there a real estate bubble?
Posted by: Janit
Date: August 27, 2014 07:48PM
Quote
mattkime
this thread is a reminder regarding where i live - in a rapidly gentrifying neighborhood. I've been here 10 years and have been lucky that i've been able to afford to pay the rising rents but i can tell my time to move on isn't too far off.

tons of great info. i'm fantasizing about being neighbors to many of you.

You shoulda bought a condo in my building in Montclair two years ago. Condo prices here lost about 30% when the bubble burst and finally started to turn around 18 months ago -- I bought just as it was turning. I was lucky enough to view my condo at the open house for agents and made an offer before anyone else even saw it. Everything that sold after mine involved a bidding war. Everything that sold before mine hung around for months before selling, even with repeated price reductions.
Options:  Reply • Quote
Sorry, only registered users may post in this forum.

Click here to login

Online Users

Guests: 62
Record Number of Users: 186 on February 20, 2020
Record Number of Guests: 5122 on October 03, 2020