Housing Bubble or Greed?

[Anonymous]

Anonymous wrote:Greed is under bidding houses and trying to make sellers take a lost. See works both ways.

I see so the buyer has a moral responsibility to bail out homeowners that over-extended themselves and bought in a bubble?

Or perhaps you only care if they do a cash-out refi to buy a vacation?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:You may find that attitudes toward condos are changing now that density is seen as a positive, location trumps space, and prices have gone up all around. Apartment living is NORMAL in cities-- it's just recovering from 50 years of low interest in this one.

I don't really understand why people who can afford the choice and want a new-ish pseudo-loft-y condo would choose Arlington, but it's worth pointing out that at 1800 squ. feet, this one is pretty big.

Because Arlington's government is decent, public services are excellent, and the schools in 22209 are some of the best around.

Yes, but for an urban area with great schools, Bethesda wins hands down at this price range. Arlington is way more middle-class, comparatively.

No, Bethesda is what would be known is a "personal preference." What the fuck is wrong with you?

No offense meant. I prefer Arlington in fact. But Arlington is dominated by chain restaurants (very good ones, but still chains), middle class stores like Container store and Pottery Barn/Crate Barrel, and 15 years ago it was a working class neighborhood with a cluster of Federal employees.

Bethesda has been 'old money' for much longer (maybe over a century; it's uphill and I think was where upper class took trolleys to escape the heat of the summer). The stores are Tiffanies, Jimmy Choo, etc right nearby in Chevy Chase (though I guess you could draw similar argument with Arlington/Georgetown), and a wider variety of local restaurants.

Hence the price point might be more historically appropriate for the Bethesda market.

[Anonymous]

Anonymous wrote:Oh gawd, that's a beautiful condo though.

Honestly these days when condos have as much sq ft as houses (more, in the case of many many N Arl houses we've viewed), you can throw a rock out your window and hit metro, and condo community spaces are as big as some parks and whole community centers, what's the ulyimate difference?

Agreed. And those bedrooms are HUGE! It's almost 2000sf, average for a lot of housing stock in this area, and for people who don't want the responsibility of home/lawn maintenance, it may make a lot of sense. It's apples and oranges depending upon lifestyle choices.

[Anonymous]

I love those projects. The developer did a great job on them.

I don't think its greed to sell a home (or condo) for the highest price someone is willing to pay for it. That's how the market works. And Arlington didn't see much a price decline anyway, so its no wonder things are well above the "bubble prices".

[Anonymous]

Anonymous wrote:Greed is under bidding houses and trying to make sellers take a lost. See works both ways.

Excuse me?
Price is the product of negotiation, so, yeah, it's a two-way street
Don't like it - don't sell, have to sell anyway - too bad, but it's not a buyers fault. That simple.
It's business, nothing personal

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:You may find that attitudes toward condos are changing now that density is seen as a positive, location trumps space, and prices have gone up all around. Apartment living is NORMAL in cities-- it's just recovering from 50 years of low interest in this one.

I don't really understand why people who can afford the choice and want a new-ish pseudo-loft-y condo would choose Arlington, but it's worth pointing out that at 1800 squ. feet, this one is pretty big.

Because Arlington's government is decent, public services are excellent, and the schools in 22209 are some of the best around.

Yes, but for an urban area with great schools, Bethesda wins hands down at this price range. Arlington is way more middle-class, comparatively.

No, Bethesda is what would be known is a "personal preference." What the fuck is wrong with you?

No offense meant. I prefer Arlington in fact. But Arlington is dominated by chain restaurants (very good ones, but still chains), middle class stores like Container store and Pottery Barn/Crate Barrel, and 15 years ago it was a working class neighborhood with a cluster of Federal employees.

Bethesda has been 'old money' for much longer (maybe over a century; it's uphill and I think was where upper class took trolleys to escape the heat of the summer). The stores are Tiffanies, Jimmy Choo, etc right nearby in Chevy Chase (though I guess you could draw similar argument with Arlington/Georgetown), and a wider variety of local restaurants.

Hence the price point might be more historically appropriate for the Bethesda market.

LOL Tysons 1 must be better than Bethesda

[Anonymous]

Anonymous wrote:

Anonymous wrote:Greed is under bidding houses and trying to make sellers take a lost. See works both ways.

I see so the buyer has a moral responsibility to bail out homeowners that over-extended themselves and bought in a bubble?

Or perhaps you only care if they do a cash-out refi to buy a vacation?

If someone isn't in foreclosure they haven't over extended themselves. Just cause you bought at a different time doesn't make you irresponsible, people have to live somewhere.

[Anonymous]

DC is a world unto itself, economy-wise. No one can predict whether this will continue.
If prices continue to rise, this is not a bubble. But no housing market goes up continually into... infinity. Every market has variation.
If something happens to hurt the DC economy, or to strengthen the rest of the nation's economy, the market here will cool. I don't mean tank. I mean some of the pressure will dissipate.
This stuff is hard to predict. Don't overbuy. Don't be in a hurry to make such a big purchase. Don't over-improve. They used to say, "buy the most expensive house you can afford." The logic was that the value will go up, and hopefully, so will your earnings. But with the housing market so volatile, and withl the job market uncertain, I don't put stock in that belief anymore. We are buying very conservatively. Don't buy into the hype, literally or figuratively. If a real estate agent is pushing you into a price range that scares you, listen to your instincts and back off. With the exception of a wealthy few, and of people snugly in a great home already, most new homebuyers and renters are over a barrel in this market. It's not you, and it's not just you. Think before you bid. Think before you escalate. And do not waive an inspection clause. If someone else gets the house because they did, let it go.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Oh gawd, that's a beautiful condo though.

Honestly these days when condos have as much sq ft as houses (more, in the case of many many N Arl houses we've viewed), you can throw a rock out your window and hit metro, and condo community spaces are as big as some parks and whole community centers, what's the ulyimate difference?

Agreed. And those bedrooms are HUGE! It's almost 2000sf, average for a lot of housing stock in this area, and for people who don't want the responsibility of home/lawn maintenance, it may make a lot of sense. It's apples and oranges depending upon lifestyle choices.

It's spacious and has fairly low condo fee for such square footage, plus they have amenities, like pool. But it's no really practical for a family due to layout and the fact that it is only 2 bedrooms. I would personally never pay this much for a 2 bedroom place, unless it was easy to convert into a 3 bedroom. It is clearly meant to be a residence for a childless couple or a family with one kid.

[Anonymous]

Anonymous wrote:DC is a world unto itself, economy-wise. No one can predict whether this will continue.
If prices continue to rise, this is not a bubble. But no housing market goes up continually into... infinity. Every market has variation.
If something happens to hurt the DC economy, or to strengthen the rest of the nation's economy, the market here will cool. I don't mean tank. I mean some of the pressure will dissipate.
This stuff is hard to predict. Don't overbuy. Don't be in a hurry to make such a big purchase. Don't over-improve. They used to say, "buy the most expensive house you can afford." The logic was that the value will go up, and hopefully, so will your earnings. But with the housing market so volatile, and withl the job market uncertain, I don't put stock in that belief anymore. We are buying very conservatively. Don't buy into the hype, literally or figuratively. If a real estate agent is pushing you into a price range that scares you, listen to your instincts and back off. With the exception of a wealthy few, and of people snugly in a great home already, most new homebuyers and renters are over a barrel in this market. It's not you, and it's not just you. Think before you bid. Think before you escalate. And do not waive an inspection clause. If someone else gets the house because they did, let it go.

Please give us some examples of voilitile housing prices for good location / school houses in the DC area?

If you are looking into a good area the advice on buying to the max is still the best.

[Anonymous]

Anonymous wrote:

Anonymous wrote:DC is a world unto itself, economy-wise. No one can predict whether this will continue.
If prices continue to rise, this is not a bubble. But no housing market goes up continually into... infinity. Every market has variation.
If something happens to hurt the DC economy, or to strengthen the rest of the nation's economy, the market here will cool. I don't mean tank. I mean some of the pressure will dissipate.
This stuff is hard to predict. Don't overbuy. Don't be in a hurry to make such a big purchase. Don't over-improve. They used to say, "buy the most expensive house you can afford." The logic was that the value will go up, and hopefully, so will your earnings. But with the housing market so volatile, and withl the job market uncertain, I don't put stock in that belief anymore. We are buying very conservatively. Don't buy into the hype, literally or figuratively. If a real estate agent is pushing you into a price range that scares you, listen to your instincts and back off. With the exception of a wealthy few, and of people snugly in a great home already, most new homebuyers and renters are over a barrel in this market. It's not you, and it's not just you. Think before you bid. Think before you escalate. And do not waive an inspection clause. If someone else gets the house because they did, let it go.

Please give us some examples of voilitile housing prices for good location / school houses in the DC area?

If you are looking into a good area the advice on buying to the max is still the best.

[Anonymous]

Please give us some examples of voilitile housing prices for good location / school houses in the DC area?

If you are looking into a good area the advice on buying to the max is still the best.

What? This makes no sense. And really, I understand typos happen, but when you're advocating for paying top dollar for a top school area, it might be a good idea to spell check.

Buying "to the max" is never a good idea in times of uncertainty, no matter how solid the housing market in your desired area. You shouldn't deplete your savings, and you shouldn't set yourself up for a situation in which your monthly budget is maxed out, especially in an environment that constantly threatens increased taxes, increased fuel costs, increased food costs but flattening incomes.

The "to the max" advice depends on the idea that (a) your salary will continue to grow, so that at some point in the not-too-distant future, you won't be overstretched, (b) other costs will only rise as much or less than your salary, and (c) there is a plentiful supply of qualified buyers, so you could easily sell if (a) or (b) didn't work out.

Basically, I think all signs suggest that's just not the case. And while the economy may be improving in the rest of the country, the things that have kept the D.C. region's economy robust are starting to shift.

[Anonymous]

Anonymous wrote:
Please give us some examples of voilitile housing prices for good location / school houses in the DC area?

If you are looking into a good area the advice on buying to the max is still the best.

What? This makes no sense. And really, I understand typos happen, but when you're advocating for paying top dollar for a top school area, it might be a good idea to spell check.

Buying "to the max" is never a good idea in times of uncertainty, no matter how solid the housing market in your desired area. You shouldn't deplete your savings, and you shouldn't set yourself up for a situation in which your monthly budget is maxed out, especially in an environment that constantly threatens increased taxes, increased fuel costs, increased food costs but flattening incomes.

The "to the max" advice depends on the idea that (a) your salary will continue to grow, so that at some point in the not-too-distant future, you won't be overstretched, (b) other costs will only rise as much or less than your salary, and (c) there is a plentiful supply of qualified buyers, so you could easily sell if (a) or (b) didn't work out.

Basically, I think all signs suggest that's just not the case. And while the economy may be improving in the rest of the country, the things that have kept the D.C. region's economy robust are starting to shift.

So when is a good time?

1990s Internet bubble don't buy
2001 Sept 11 / Stock crash don't buy
2005 housing bubble don't buy
2007 housing crash don't but
2013 bubble coming again don't buy

It seems no matter what everyone thinks there is a crisis. Get over it life is a crisis.

Here's a tip that's worked for me I bought in all times and have done so every 5 years without issues because I chose to buy SFH (no matter what size), NOT to compromise on location inside the beltway, near a metro and excellent schools.

[Anonymous]

Anonymous wrote:

Anonymous wrote:
Please give us some examples of voilitile housing prices for good location / school houses in the DC area?

If you are looking into a good area the advice on buying to the max is still the best.

What? This makes no sense. And really, I understand typos happen, but when you're advocating for paying top dollar for a top school area, it might be a good idea to spell check.

Buying "to the max" is never a good idea in times of uncertainty, no matter how solid the housing market in your desired area. You shouldn't deplete your savings, and you shouldn't set yourself up for a situation in which your monthly budget is maxed out, especially in an environment that constantly threatens increased taxes, increased fuel costs, increased food costs but flattening incomes.

The "to the max" advice depends on the idea that (a) your salary will continue to grow, so that at some point in the not-too-distant future, you won't be overstretched, (b) other costs will only rise as much or less than your salary, and (c) there is a plentiful supply of qualified buyers, so you could easily sell if (a) or (b) didn't work out.

Basically, I think all signs suggest that's just not the case. And while the economy may be improving in the rest of the country, the things that have kept the D.C. region's economy robust are starting to shift.

So when is a good time?

1990s Internet bubble don't buy
2001 Sept 11 / Stock crash don't buy
2005 housing bubble don't buy
2007 housing crash don't but
2013 bubble coming again don't buy

It seems no matter what everyone thinks there is a crisis. Get over it life is a crisis.

Here's a tip that's worked for me I bought in all times and have done so every 5 years without issues because I chose to buy SFH (no matter what size), NOT to compromise on location inside the beltway, near a metro and excellent schools.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:
Please give us some examples of voilitile housing prices for good location / school houses in the DC area?

If you are looking into a good area the advice on buying to the max is still the best.

What? This makes no sense. And really, I understand typos happen, but when you're advocating for paying top dollar for a top school area, it might be a good idea to spell check.

Buying "to the max" is never a good idea in times of uncertainty, no matter how solid the housing market in your desired area. You shouldn't deplete your savings, and you shouldn't set yourself up for a situation in which your monthly budget is maxed out, especially in an environment that constantly threatens increased taxes, increased fuel costs, increased food costs but flattening incomes.

The "to the max" advice depends on the idea that (a) your salary will continue to grow, so that at some point in the not-too-distant future, you won't be overstretched, (b) other costs will only rise as much or less than your salary, and (c) there is a plentiful supply of qualified buyers, so you could easily sell if (a) or (b) didn't work out.

Basically, I think all signs suggest that's just not the case. And while the economy may be improving in the rest of the country, the things that have kept the D.C. region's economy robust are starting to shift.

So when is a good time?

1990s Internet bubble don't buy
2001 Sept 11 / Stock crash don't buy
2005 housing bubble don't buy
2007 housing crash don't but
2013 bubble coming again don't buy

It seems no matter what everyone thinks there is a crisis. Get over it life is a crisis.

Here's a tip that's worked for me I bought in all times and have done so every 5 years without issues because I chose to buy SFH (no matter what size), NOT to compromise on location inside the beltway, near a metro and excellent schools.

Oh yeah forgot one the S&L crisis of the 80s.

So if you are so worried about uncertainty you'd be should've been renting for the the last 25 years + infinity.