Posted by
Message
TopFlightSecurity
Arkansas Fan
Savannah, Georgia
Member since Dec 2018
599 posts

Is housing a bubble?
It's starting to feel like 2004 - 2006 again when house prices are outpacing wage growth. I know it varies by location but I'm outside of Savannah and don't feel like it can sustain this increase in prices.

Interested to hear what the actual smart people on the subject think.


jimbeam
USA Fan
University of LSU
Member since Oct 2011
56684 posts
 Online 

re: Is housing a bubble?
I’m looking to buy 1st property but I’m very hesitant


Replies (0)
Replies (0)
317
Mr.Perfect
LSU Fan
Louisiana
Member since Mar 2013
16757 posts
 Online 

re: Is housing a bubble?
With interest rates where they are, it’s sustainable.

That said, interest rates really can’t move north without crashing the housing market.

So one way or another we are fricked.


baldona
Auburn Fan
Florida
Member since Feb 2016
10438 posts

re: Is housing a bubble?
Not a huge bubble, but it could certainly dip. In 2006 there were people with 2,3,4+ mortgages that were all adjustable rate mortgages and going to adjust up very soon. While I agree housing prices are expensive, people can imo still afford them they are just a larger portion of their income then it should be. I certainly can’t believe the amount of people buying $400k homes these days.


Ham Malone
Arkansas Fan
Denver
Member since Nov 2010
2098 posts

re: Is housing a bubble?
I wonder about it too, you can’t even get in the market for a single family unattached home at under 350k here in Denver. The economy is strong but there aren’t enough people here with that kind of household income to sustain the market growth.


Replies (0)
Replies (0)
10
stout
Arizona Fan
Back in God's Country
Member since Sep 2006
140026 posts

re: Is housing a bubble?
quote:

With interest rates where they are, it’s sustainable.



That would be true if the average American household wasn't in massive debt outside of just their house.


Mr.Perfect
LSU Fan
Louisiana
Member since Mar 2013
16757 posts
 Online 

re: Is housing a bubble?
Stout There are certainly people over leveraged but defaults aren’t indicating a big looming issue that I’m aware of


HailToTheChiz
Auburn Fan
Back in Auburn
Member since Aug 2010
31984 posts

re: Is housing a bubble?
I'm not smart but I feel like it's a bubble. It may not dip until after Trump's presidency


stout
Arizona Fan
Back in God's Country
Member since Sep 2006
140026 posts

re: Is housing a bubble?
quote:

Stout There are certainly people over leveraged but defaults aren’t indicating a big looming issue that I’m aware of




I don't want to type everything I did the other day but the OT had a thread on this yesterday

LINK /


One of my posts

quote:

quote:

i ran into an old client yesterday (he owns a lot of rental properties) and he said that the LC market is way over-saturated and now you are seeing company listings getting bigger and rentals staying on the market longer. seems like we's about to experience a correction here




He's correct. It is slowing down.

The whole nation is about to see a correction, though. The MBA has their annual meeting at the start of every year and a correction was a big topic at this years meeting. They predict cooling off through 2019 and full on correction in 2020

New housing price growth slowed in the entire nation with a few exceptions for the the 6th month in a row last month. That's a sign of things cooling off.


Mr.Perfect
LSU Fan
Louisiana
Member since Mar 2013
16757 posts
 Online 

re: Is housing a bubble?
That DV isn’t mine

Thank you for posting this.

I will say this, I LOVE looking at properties on the market and going into the property history section and seeing the last few sales and the timeframe. It’s unbelievable the ROI people now expect. I agree it’s not sustainable this my comment that rates MUST remain low or its crashing


SlowFlowPro
Stanford Fan
Simple Solutions to Complex Probs
Member since Jan 2004
367663 posts

re: Is housing a bubble?
This post was edited on 6/11 at 9:15 pm


Replies (0)
Replies (0)
25
HailToTheChiz
Auburn Fan
Back in Auburn
Member since Aug 2010
31984 posts

re: Is housing a bubble?
quote:

will say this, I LOVE looking at properties on the market and going into the property history section and seeing the last few sales and the timeframe. It’s unbelievable the ROI people now expect. I agree it’s not sustainable this my comment that rates MUST remain low or its crashing


I agree with all this


lynxcat
Rutgers Fan
Member since Jan 2008
20531 posts
 Online 

re: Is housing a bubble?
I expect 0% gain from owning a home. My only hope is that it doesn’t decline in value and that there are not a ton of unexpected maintenance.

A mortgage is a hedge against inflation so there is that potential side benefit.


Replies (0)
Replies (0)
58
jmcwhrter
Member since Nov 2012
1569 posts
 Online 

re: Is housing a bubble?
quote:

I'm not smart but I feel like it's a bubble. It may not dip until after Trump's presidency


The conspiracy theorist in me expects them to tank the market leading up to Nov 2020 so trump cant lean on strong economy


kywildcatfanone
Kentucky Fan
Wildcat Country!
Member since Oct 2012
63743 posts

re: Is housing a bubble?
Posted this in the mortgage rate thread, but I just told a builder yesterday I'm ready to sigh and start building, so I hope rates are low in the spring of 2020 when I will be looking. I'm only planning to do a 15 year.

I do have a question though for the experts on here. Would you take money out of savings to put down on a home (not to get to 20% or anything, just to put down to have a lower mortgage), or keep that money in your savings to be used as needed outside the mortgage?

I'm currently figuring to have a $250K mortgage, but could make it either $200 or less if I wanted to drop some cash, but I like having 3 years of expenses in the bank, so I don't know if it would make sense to pull some out to lower the mortgage total. Thoughts?


thegreatboudini
McNeese State Fan
Member since Oct 2008
4257 posts
 Online 

re: Is housing a bubble?
quote:

I certainly can’t believe the amount of people buying $400k homes these days.


This is what is crazy to me.

I’m planning to relocate next fall to the greater Denver area and will have 2 healthy, secure incomes. I’m not even interested in living in Denver as I’m hoping to head west-south west 10-30 miles (think Evergreen to Bailey), and If I don’t spend $400k+ I have to shite in an out house.


The Spleen
Alabama Fan
Member since Dec 2010
25602 posts

re: Is housing a bubble?
While I'm not convinced there's a bubble about to pop, I do think there is a market correction in the near future where prices will at the very least stabilize. There are some other concerning things in the overall economy though that could certainly lead to the bubble popping and we have another crisis on our hands. Not sure how many more times farmers can be bailed out, and I'm seeing lots of reports that a lot of corn farmers didn't get their corn crops planted because it was so wet. Their usual fallback in that situation is soybeans, but with the tariffs pissing match with China there may not be a soybean market at harvest time. Not to even mention steel and capital investments for farmers.


lynxcat
Rutgers Fan
Member since Jan 2008
20531 posts
 Online 

re: Is housing a bubble?
quote:

3 years of expenses in the bank,


This appears overly conservative.


Shepherd88
Member since Dec 2013
2715 posts

re: Is housing a bubble?
Insurance will come in and cover a lot of the farmers in the delta for the flooding but since most weren’t able to plant anything, their premiums are going to sky rocket next year. We may see some issues arise from that.


Replies (0)
Replies (0)
00
kywildcatfanone
Kentucky Fan
Wildcat Country!
Member since Oct 2012
63743 posts

re: Is housing a bubble?
quote:

This appears overly conservative.


It is, but I'm putting 30% of my salary in the stock market and I feel like that is enough. While I do wish sometimes I had invested maybe 1/2 of my savings, I am glad to see it when I look at my statements.



first pageprev pagePage 1 of 4next pagelast page

Back to top

logoFollow TigerDroppings for LSU Football News
Follow us on Twitter, Facebook and Instagram to get the latest updates on LSU Football and Recruiting.

FacebookTwitterInstagram