Remember the recent bubble and crash -- it could happen again

[Anonymous]

Anonymous wrote:Fair enough. It should be emphasized that Jim Cramer is not an economist. He is a talking head that gets paid to drum up hype, not analyze the economy. And for what it is worth, many economists were screaming about the bubble (e.g., Dean Baker at CEPR)

No- most economists weren't screaming about the bubble. Save for Nouriel Roubini, no one wanted to believe it was true or could happen. Not the Feds, not Forbes, not Deloitte Research, not the government, not even the schools of economists and researchers at Harvard or Columbia. Not Bear Sterns, Goldman Sachs or any of the others DIRECTLY involved in the creation of the bubble.

Come on man. No one wants to believe it.
The bubble is always biggest right before it pops.

[Anonymous]

I'd argue most of these "economists" are no different than Cramer. They were propping up the media with propaganda and the whole damned thing is exactly the same.

[Anonymous]

why is a recent grad on a parenting website let alone worrying about a house?

[Anonymous]

I didn't say most, I said many. And one of them (Shiller) won the Nobel this year for work that was largely related to his call on the housing bubble.

Anonymous wrote:

Anonymous wrote:Fair enough. It should be emphasized that Jim Cramer is not an economist. He is a talking head that gets paid to drum up hype, not analyze the economy. And for what it is worth, many economists were screaming about the bubble (e.g., Dean Baker at CEPR)

No- most economists weren't screaming about the bubble. Save for Nouriel Roubini, no one wanted to believe it was true or could happen. Not the Feds, not Forbes, not Deloitte Research, not the government, not even the schools of economists and researchers at Harvard or Columbia. Not Bear Sterns, Goldman Sachs or any of the others DIRECTLY involved in the creation of the bubble.

Come on man. No one wants to believe it.
The bubble is always biggest right before it pops.

[Anonymous]

And still no one listened

[Anonymous]

Anonymous wrote:I'd argue most of these "economists" are no different than Cramer. They were propping up the media with propaganda and the whole damned thing is exactly the same.

Keep in mind they were all being lied to by the ratings agencies.

[Anonymous]

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Anonymous wrote:No bubble. Values haven't doubled around here. Plus, everyone's money is still in the stock market, it's not being thrown all at real estate. Plus, there's not the same subprime market laying a foundation for foreclosures.

I think real estate will slow down though, significantly, sometime in the next decade. Because these kids in college and high school will refuse to pay over $500k for a shack in a crappy neighborhood, and demand will lull.

No offense, but I'm 5 years out of college, make 150K, and refuse to pay 600K for a "tear down." Y'all are living in a everything-is-fine bubble.

Well there you go, when you make 150k 5 years out of college it means wages are high enough to support a 600k teardown. At your age that's what you start with.

I make more than anyone else I know with the exception of my lawyer friends. My job straight out of college was 30K. No upward salary movement in that field so I switched to a lucrative field that doesn't use my graduate degree.

To add - at salary of 150K, it would not be a good financial decision to buy a 600K home. 450K at the absolute max.

But housing always go up, so he should leverage as much as he can! Who cares if it is 4x his income, that is old fashioned

That's bubble talk! And I'm not a he, I'm a she. Sorry my expectations seem high. At nearly 30 I want a family and a home. I can afford neither in this area. I've had male friends buy condos (2006) and get stuck underwater & unable to rent for the amount of the mortgage + HOA fees. If I want a family in the next 5 years, that's a terrible decision.

[Anonymous]

^Thinks that's sarcasm, PP.

[Anonymous]

Anonymous wrote:^Thinks that's sarcasm, PP.

Sometimes it's hard to tell with the posters in the real estate forum!

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:No bubble. Values haven't doubled around here. Plus, everyone's money is still in the stock market, it's not being thrown all at real estate. Plus, there's not the same subprime market laying a foundation for foreclosures.

I think real estate will slow down though, significantly, sometime in the next decade. Because these kids in college and high school will refuse to pay over $500k for a shack in a crappy neighborhood, and demand will lull.

No offense, but I'm 5 years out of college, make 150K, and refuse to pay 600K for a "tear down." Y'all are living in a everything-is-fine bubble.

Well there you go, when you make 150k 5 years out of college it means wages are high enough to support a 600k teardown. At your age that's what you start with.

I make more than anyone else I know with the exception of my lawyer friends. My job straight out of college was 30K. No upward salary movement in that field so I switched to a lucrative field that doesn't use my graduate degree.

To add - at salary of 150K, it would not be a good financial decision to buy a 600K home. 450K at the absolute max.

But housing always go up, so he should leverage as much as he can! Who cares if it is 4x his income, that is old fashioned

That's bubble talk! And I'm not a he, I'm a she. Sorry my expectations seem high. At nearly 30 I want a family and a home. I can afford neither in this area. I've had male friends buy condos (2006) and get stuck underwater & unable to rent for the amount of the mortgage + HOA fees. If I want a family in the next 5 years, that's a terrible decision.

How many years were in you college?!

Your friends bought at the peak of the market. How is that comparable?

Almost everyone I know started with a condo/small TH/small dinky house ("starter home") far out and then built equity over the years and then eventually bought up to a bigger house for a family.

If you aren't willing to do this and you just want to jump in and buy a family home you sound a little entitled. Either buy something in your price range or keep saving until you can afford something more.

[Anonymous]

stock market performance

[Anonymous]

Anonymous wrote:

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Anonymous wrote:

Anonymous wrote:No bubble. Values haven't doubled around here. Plus, everyone's money is still in the stock market, it's not being thrown all at real estate. Plus, there's not the same subprime market laying a foundation for foreclosures.

I think real estate will slow down though, significantly, sometime in the next decade. Because these kids in college and high school will refuse to pay over $500k for a shack in a crappy neighborhood, and demand will lull.

No offense, but I'm 5 years out of college, make 150K, and refuse to pay 600K for a "tear down." Y'all are living in a everything-is-fine bubble.

Well there you go, when you make 150k 5 years out of college it means wages are high enough to support a 600k teardown. At your age that's what you start with.

I make more than anyone else I know with the exception of my lawyer friends. My job straight out of college was 30K. No upward salary movement in that field so I switched to a lucrative field that doesn't use my graduate degree.

To add - at salary of 150K, it would not be a good financial decision to buy a 600K home. 450K at the absolute max.

But housing always go up, so he should leverage as much as he can! Who cares if it is 4x his income, that is old fashioned

That's bubble talk! And I'm not a he, I'm a she. Sorry my expectations seem high. At nearly 30 I want a family and a home. I can afford neither in this area. I've had male friends buy condos (2006) and get stuck underwater & unable to rent for the amount of the mortgage + HOA fees. If I want a family in the next 5 years, that's a terrible decision.

How many years were in you college?!

Your friends bought at the peak of the market. How is that comparable?

Almost everyone I know started with a condo/small TH/small dinky house ("starter home") far out and then built equity over the years and then eventually bought up to a bigger house for a family.

If you aren't willing to do this and you just want to jump in and buy a family home you sound a little entitled. Either buy something in your price range or keep saving until you can afford something more.

It's comparable because the prices are nearly back to 2006 in some areas. How do we know that another crash isn't coming around the corner?

[Anonymous]

Anonymous wrote:Oh my favorite... from the Washington Post March 2, 2005:
"The housing markets will cool as interest rates rise and as affordability declines, but they won't crash. Most markets will flatten for a while or increase at lower, more historical, rates. A few may decline for a year or two. But we won't have a crash."

And most areas inside the beltway didn't crash.

[Anonymous]

Anonymous wrote:

Anonymous wrote:No bubble. Values haven't doubled around here. Plus, everyone's money is still in the stock market, it's not being thrown all at real estate. Plus, there's not the same subprime market laying a foundation for foreclosures.

I think real estate will slow down though, significantly, sometime in the next decade. Because these kids in college and high school will refuse to pay over $500k for a shack in a crappy neighborhood, and demand will lull.

No offense, but I'm 5 years out of college, make 150K, and refuse to pay 600K for a "tear down." Y'all are living in a everything-is-fine bubble.

[Anonymous]

Anonymous wrote:

Anonymous wrote:No bubble. Values haven't doubled around here. Plus, everyone's money is still in the stock market, it's not being thrown all at real estate. Plus, there's not the same subprime market laying a foundation for foreclosures.

I think real estate will slow down though, significantly, sometime in the next decade. Because these kids in college and high school will refuse to pay over $500k for a shack in a crappy neighborhood, and demand will lull.

No offense, but I'm 5 years out of college, make 150K, and refuse to pay 600K for a "tear down." Y'all are living in a everything-is-fine bubble.

You only make $150K a year. I am so sorry, PP. You really can't afford this area. Please go elsewhere.