bubble?

has anyone else seen this article?

kind of scary, no? (I know *I* am getting prety nervous!)

Well, we haven't bought yet, so for us this isn't bad news, but more of a warning.

It sounds like for those with ARMs the risk is greatest, but they knew that when taking on that kind of mortgage.

personally - I am not worried about it - let me tell you why.

I bought my house about a year ago. We totally overpaid for it - this we know. We spent a lot of money - and yet the houses in our area still are going for more than we paid.

If the market crashes in a year - two years...five years - so be it. it doesnt = and shouldnt matter to you as long as you are not selling your home.

Chances are we will be in this house (I estimate) 10-15 years. So all I am worried about it where the market will be then.

Now lets say I paid $600,000 for my house (just making up #'s here) and in 15 years I sell it for $600,000 (which is almost impossible since inflation alone should make the prices go up) but let's just say that happens.


Fine -I don't make a cent - BUT that means the prices on other homes should be low - so I can still buy a nicer home, AND technically (due to tax breaks on the interest) it's kind of like we lived in the house for FREE for 15 years....how else can you do that??

You can't! SO ladies - don't worry so much about the bubble - like I said - it only effects you if you are SELLING your house - or not planning on staying for very long.

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Posted by Jmg11

personally - I am not worried about it - let me tell you why.

I bought my house about a year ago. We totally overpaid for it - this we know. We spent a lot of money - and yet the houses in our area still are going for more than we paid.

If the market crashes in a year - two years...five years - so be it. it doesnt = and shouldnt matter to you as long as you are not selling your home.

Chances are we will be in this house (I estimate) 10-15 years. So all I am worried about it where the market will be then.

Now lets say I paid $600,000 for my house (just making up #'s here) and in 15 years I sell it for $600,000 (which is almost impossible since inflation alone should make the prices go up) but let's just say that happens.


Fine -I don't make a cent - BUT that means the prices on other homes should be low - so I can still buy a nicer home, AND technically (due to tax breaks on the interest) it's kind of like we lived in the house for FREE for 15 years....how else can you do that??

You can't! SO ladies - don't worry so much about the bubble - like I said - it only effects you if you are SELLING your house - or not planning on staying for very long.

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Well said! I agree with you 100%.

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Posted by skew

THIS is happening already, 'as inflation picks up, you'll see interest rates go up, too. And as a direct result, real-estate prices are going to go down.'

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we are hoping to buy something on the way down...i actually breathed a sigh of relief that our offer was not accepted today as i think we were being crazy with what we bid.

the key (and what i have been thinking all along) is the fact that salaries are just not keeping up with what's out there and something's gotta give - let's all hope for big raises, ha!

I really do not think the real estate market will crash especially on the range that is considered a starter home these days ( scary range that it is). There is just too much demand for homes in the $300,000 - $500,000 price range. I do think prices will stabilize though.

Here's another article from the NYTIMES.

Will the Market Stay Strong, Or Will It Fold?

http://query.nytimes.com/gst/fullpage.html?res=9D0CE0D8113AF937A15753C1A9629C8B63

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