I can't wait for this to happen in my area... It's actually madness to see what houses are selling for in my area. People usually flip to move up. But since the market is hot, people are purchasing to sell outright.

I can't see how it's not a bubble...they're building like crazy in the Atlanta area and they're all $350k+ for a 4000 sq. ft house on 10k sq ft lots. They're throwing these neighborhoods up all over but I don't see people moving into them, yet they keep cranking them out.

My wife and I just sold our house in Savannah and moved back and we decided to do the apartment thing until we figure out where we wanna live, but damn...I kinda wanna see this bubble pop so we can get something decent for a reasonable price, haha.

same here in pgh

apartment/condo/townhouse explosion all over the place

I heard within the next few years from now, but if the "pop" came this winter I wouldn't be surprised either. Those of you saving your cash to buy a home, that's the perfect time to pull the trigger.

I'm in the real estate business, I'm actually a lender for a one of the larger mortgage companies in the US. Not trying to act like a bad ass either...

But a lot of the people that I talk to, including my Jewish CPA lol, say 2yrs max for this bubble to burst. Like someone else said, it may not be quite 2008-2009 again but the prices must come down. The fed has been talking increasing rate for some time now and IT WILL HAPPEN. It will likely happen towards December but I wouldn't expect the market to instantly tank. The worst affected areas will likely be Mid-West (as usual) with East and West Coast still maintaining above national average pricing.

Honestly I can't wait for this to happen, like another poster said people just don't make enough to support the recent increase in home values. And I don't know about the rest of the country but here in California the wages do not match the home values at the moment.

I read somewhere that it was mostly the "first time homes" that were being affected. For my area that is homes that are on about 180k-300k.


Most baby boomers are downsizing, Generation X is keeping what they have, and the millennials are buying their first homes to take advantage of the low interest rates.


The problem is that most of the Gen X (and older millennials) are not selling their homes due to what happened a few years ago. Most of them either refinanced or built on to their existing first homes.


This has created a really small market for cheaper homes that the millennials can afford, driving up the cost of the limited market.

Sold my house in 2012, didn't make a damned dime off of it. Broke even. We had to rent out my wife's townhouse for 8 fucking years because it wouldn't sell. Finally got rid of that money pit this year. Sold it for what we owed on it. Two sales, not one cent of profit.
I'll die before I sell our current house.

It's not going to happen until the Feds raise the interest rates. As long as they are at or near historic lows the "bubble" won't burst. If people can borrow, homes will sell. Home values won't drop until interest rates rise significantly. There's more to it but that's the short version.

went to see a loan officer last week and she told me and my fiancee straight up that its a really bad time to even attempt to buy right now.

its telling when a bank employee pretty much tells you to not do it.

Me and my fiancee wanted to try to land a house by the end of the year this year but it looks like its not going to happen. Bright side is itll give us more time to save when we try again next year.


(I live in socal and me and my fiancee both have amazing credit and DTI ratios)

And what was there reasoning for it being a "bad time"??

I find it odd as with new regulations, banks have dove head first back into the self focus tactics that caused the housing crash in the first place and would give a loan out to just about anyone with a heart beat at this point, although at probably an inflated rate dependent on credit score of course (eg: investors do not have to invest with the clients best interest of making money as opposed to the investor.......)

Yeah prices are high right now. I don't think we're necessarily going to see a "bubble" burst, but prices can't keep rising at the rate they are right now.

Part of whats making the prices so high (speaking for SE WI at least) is that the inventory is LOW. A house goes on the market in my neighborhood and it sees multiple over-asking price offers. The reason inventory is low is there's people like me who remember the crash and recession all too well. I could sell my house in probably a week for $100k more than I owe...and then what though? Buy a more expensive house at about the same cost? Then I need to remodel that house because anything in that price range is larger than my house, but out dated. Na, I'll sit put for a while and keep improving this house.

Which reminds me. I have to post pics of how those lockers turned out...

Buying a house is hard, my only suggestion is to build on your own land. I failed to do this and now I'm actively looking for land to build a house on. If I could do it all over again, I would of went my buddies route. He is currently living in his 5th wheel rv while his house is being built. He paid 85k for an acre of land between Temecula and Corona CA. He saved 50k in rent over the past two years. His house will be ready before Aug 2017. The house is green, with solar!

House prices right now especially in Socal are outrageous.

Homes in older lower income areas are hovering around $400k.

Newer homes in more suburban established areas are over half a mill.

Relocating to temecula (an hour north of where I currently am) is an option. That area is still pretty cheap.

Gotcha. And its nice to see that a banker actually has your best interest at heart! That is refreshing :)

Our loan got sold (which were told was going to happen) within 2 months lol!

Yeah, youre telling me. Right when we sat down and told her our intentions she immediately put it out there that its a bad time to attempt it.

Unfortunately the fed has raise the rates, as well as the Trump election win really driving up rates, and home prices have not come down. I don't see there being this huge drop in home prices like everyone was saying would happen when rates went up. I work as a lender, and home purchases have not slowed down that much despite the 30yf rate going up almost 1% in just 6 months.

Have you thought about starting off in a smaller condo? These are considerably more affordable for a first time home buyer

Its fairly easy to buy one in ohio, I paid 96k for mine attached 1 car garage 3 bedroom 1600 sqft with a 2 car detached on 2 acres. Needed updated but was livable when I moved in.

No. We dont want a condo.

I would settle for a townhome but the ones that interest us have outrageous HOA rules and shitty management.

Its all about location and inventory

Here in DC: That is a 500-750K house depending on area (garage is worth 20-50k by itself)

Where in OH? I was in a suburb of Columbus last year at a suuuuper dope house and it was expensive. IIRC like $700. So like what really nice houses are here.

I'm in an upscale neighborhood in a suburb 25 outside of downtown Milwaukee and my house is about $400. My neighbor's house behind me is $700 and there's million dollar houses all around Brookfield.

I'm surprised the California houses you guys are talking about aren't more.

What type of downpayment are you trying to put?

HOAs suck, even a lot of single family residences have them now along with mellaroos

How big is your house? We have houses here in that range but they are either pretty small and old or in areas that are bad or really far. 4 bedrooms in upscale neighborhoods are like 700 minimum.

Yeesh.

Would not pay that much anywhere in Wisconsin, except for an architectural marvel with history behind it.

And this coming from someone who just bought a house in Milwaukee haha

I live near a newer suburban development thats still fairly priced. I asked my realtor why thats the case and she told me that its because the Mellaroos and HOA is through the roof in that area.

Either things are starting to slow down or prices are just that crazy. I havent gotten any new listings from my realtor in over a week now. I usually get them every couple of days.

I live about 20 miles west of canton. Columbus is super expensive especially places like German village.

It's like 2100sq ft, 4 bedrooms, but I have an acre of land with woods and shit.

That's how much nice houses cost in Brookfield, as you know. I lived in Milwaukee most of my life. Not raising kids in the city.

Yeah I forgot where it was, but the homes were older but really large.


The wife and I have contemplated moving to NY area since she works in Manhattan every week...but FUCK! A house like ours in an older, historic area is no less than a million. If she ever gets a job offer from her client we'd have to.

Alot of those "young couple" episodes are staged. They really don't have that money.

North Austin prices
 

The prices in North Austin TX is ridiculously high. I bought my house at 272k it's worth 320k in
5 year period. The real problem is the taxes. 7200 ficial year 18. I can't wait for my disability rating from the Navy.

Townhouses in my area (less then 1500 square feet) are selling for half a million dollars...

....yeah... It's crazy!

The market is still VERY hot, and houses sell in a few days, with quite a few offers to choose from. That being said, there's not a surplus so finding something will be hard.