This must be some sort of housing bubble again

[Anonymous]

Anonymous wrote:

Anonymous wrote:Whatever prices may do - how much longer can buyers count on locking in these interest rates?

WHen rates go up that means salaries do as well. The fed said that.

Hey, you forgot your <sarcasm> tag!

[Anonymous]

if rates rise it means the economy has recovered and businesses are giving raises and hiring.

[Anonymous]

http://www.washingtonpost.com/business/economy/new-fed-chief-janet-yellen-job-market-recovery-far-from-complete/2014/02/11/c6ec8888-931d-11e3-83b9-1f024193bb84_story.html

[Anonymous]

Anonymous wrote:

Anonymous wrote:OP I'm with you on the housing bubble.

This area has terrible housing stock. The ones in the good school districts get top dollar, but are often shitty, falling down or have crazy renovations (we refer to these as the Frankenstein houses). It's totally and unbelievably depressing. For any amount of money, the houses aren't good. 800k should buy you a well made, renovated home, but here it buys you Pimmit Hills or a tear down. Very sobering. What would cost 250k in other areas can be 1.4 million here.

Also what were builders thinking in the 50s-70s here?!! Worst home architecture.

What's wrong with pimmit hills? I think it is the best investment with greatest potential for being a top tiered neighborhood.

I live in McLean and wouldn't hesitate to buy in Pimmit Hills but would have 10 years a go.

One builder, Paramount Construction, is offering to build similar houses on teardown lots in Pimmit Hills and McLean. The Pimmit Hills house is on a slightly smaller lot, but $300,000 less.

[Anonymous]

Anonymous wrote:if rates rise it means the economy has recovered and businesses are giving raises and hiring.

no it means the feds realize they have blown another bubble.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:OP I'm with you on the housing bubble.

This area has terrible housing stock. The ones in the good school districts get top dollar, but are often shitty, falling down or have crazy renovations (we refer to these as the Frankenstein houses). It's totally and unbelievably depressing. For any amount of money, the houses aren't good. 800k should buy you a well made, renovated home, but here it buys you Pimmit Hills or a tear down. Very sobering. What would cost 250k in other areas can be 1.4 million here.

Also what were builders thinking in the 50s-70s here?!! Worst home architecture.

What's wrong with pimmit hills? I think it is the best investment with greatest potential for being a top tiered neighborhood.

I live in McLean and wouldn't hesitate to buy in Pimmit Hills but would have 10 years a go.

One builder, Paramount Construction, is offering to build similar houses on teardown lots in Pimmit Hills and McLean. The Pimmit Hills house is on a slightly smaller lot, but $300,000 less.

I said it as an investment and has potential for upwards, meaning if you can get in now it will go up higher than already established "good" neighborhoods. The massive metro centered development nearby, the huge amount of teardowns on every block and the continual increase in quality in the school pyramids are going to transform the PH neighborhood. In McLean this happened to some of the older neighborhoods back in the 80s-90s.

[Anonymous]

Anonymous wrote:http://www.washingtonpost.com/business/economy/new-fed-chief-janet-yellen-job-market-recovery-far-from-complete/2014/02/11/c6ec8888-931d-11e3-83b9-1f024193bb84_story.html

Yellen is going to do things very different I think. She is going to raise rates and instead do more direct job market stimulation, such as purchasing construction bonds tied with specific employment targets for the underlying projects. Really shake things up. She is a labor economist and an iconoclast and simply awesome. And this means she will decouple the recovery in the job market from housing and stock asset appreciation and put the Feds power to help the people and not just the 1%.

[Anonymous]

Anonymous wrote:

Anonymous wrote:if rates rise it means the economy has recovered and businesses are giving raises and hiring.

no it means the feds realize they have blown another bubble.

uhh huh so you think that people will stop being able to pay their mortgages when their interest only negative arm loans are going to reset in a year?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:OP I'm with you on the housing bubble.

This area has terrible housing stock. The ones in the good school districts get top dollar, but are often shitty, falling down or have crazy renovations (we refer to these as the Frankenstein houses). It's totally and unbelievably depressing. For any amount of money, the houses aren't good. 800k should buy you a well made, renovated home, but here it buys you Pimmit Hills or a tear down. Very sobering. What would cost 250k in other areas can be 1.4 million here.

Also what were builders thinking in the 50s-70s here?!! Worst home architecture.

What's wrong with pimmit hills? I think it is the best investment with greatest potential for being a top tiered neighborhood.

I live in McLean and wouldn't hesitate to buy in Pimmit Hills but would have 10 years a go.

One builder, Paramount Construction, is offering to build similar houses on teardown lots in Pimmit Hills and McLean. The Pimmit Hills house is on a slightly smaller lot, but $300,000 less.

I said it as an investment and has potential for upwards, meaning if you can get in now it will go up higher than already established "good" neighborhoods. The massive metro centered development nearby, the huge amount of teardowns on every block and the continual increase in quality in the school pyramids are going to transform the PH neighborhood. In McLean this happened to some of the older neighborhoods back in the 80s-90s.

actually, if i lived in pimmit hills, i'd invest in asthma medication, since you are surrounded on all sides by massive highways and major roads. take a deep breath, it's probably worse than living in downtown DC.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:if rates rise it means the economy has recovered and businesses are giving raises and hiring.

no it means the feds realize they have blown another bubble.

uhh huh so you think that people will stop being able to pay their mortgages when their interest only negative arm loans are going to reset in a year?

umm, yes, b/c that is exactly what happened last time? not really seeing your point?

[Anonymous]

The realities of the DC area are:

1) people have a lot more money than people in this area 20 years ago. A pair of GS15s are making over $200K.

2) there are more people and there is no close in building space.

3) white people don't want to live with brown people in "affordable" neighborhoods, so there is a lot of competition for specific areas.

4) foreign investors are buying homes for rentals

5) no rental units are being built, so the rental options also have sky high prices.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:OP I'm with you on the housing bubble.

This area has terrible housing stock. The ones in the good school districts get top dollar, but are often shitty, falling down or have crazy renovations (we refer to these as the Frankenstein houses). It's totally and unbelievably depressing. For any amount of money, the houses aren't good. 800k should buy you a well made, renovated home, but here it buys you Pimmit Hills or a tear down. Very sobering. What would cost 250k in other areas can be 1.4 million here.

Also what were builders thinking in the 50s-70s here?!! Worst home architecture.

What's wrong with pimmit hills? I think it is the best investment with greatest potential for being a top tiered neighborhood.

I live in McLean and wouldn't hesitate to buy in Pimmit Hills but would have 10 years a go.

One builder, Paramount Construction, is offering to build similar houses on teardown lots in Pimmit Hills and McLean. The Pimmit Hills house is on a slightly smaller lot, but $300,000 less.

I said it as an investment and has potential for upwards, meaning if you can get in now it will go up higher than already established "good" neighborhoods. The massive metro centered development nearby, the huge amount of teardowns on every block and the continual increase in quality in the school pyramids are going to transform the PH neighborhood. In McLean this happened to some of the older neighborhoods back in the 80s-90s.

actually, if i lived in pimmit hills, i'd invest in asthma medication, since you are surrounded on all sides by massive highways and major roads. take a deep breath, it's probably worse than living in downtown DC.

Haters gonna hate.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:OP I'm with you on the housing bubble.

This area has terrible housing stock. The ones in the good school districts get top dollar, but are often shitty, falling down or have crazy renovations (we refer to these as the Frankenstein houses). It's totally and unbelievably depressing. For any amount of money, the houses aren't good. 800k should buy you a well made, renovated home, but here it buys you Pimmit Hills or a tear down. Very sobering. What would cost 250k in other areas can be 1.4 million here.

Also what were builders thinking in the 50s-70s here?!! Worst home architecture.

What's wrong with pimmit hills? I think it is the best investment with greatest potential for being a top tiered neighborhood.

I live in McLean and wouldn't hesitate to buy in Pimmit Hills but would have 10 years a go.

One builder, Paramount Construction, is offering to build similar houses on teardown lots in Pimmit Hills and McLean. The Pimmit Hills house is on a slightly smaller lot, but $300,000 less.

I said it as an investment and has potential for upwards, meaning if you can get in now it will go up higher than already established "good" neighborhoods. The massive metro centered development nearby, the huge amount of teardowns on every block and the continual increase in quality in the school pyramids are going to transform the PH neighborhood. In McLean this happened to some of the older neighborhoods back in the 80s-90s.

actually, if i lived in pimmit hills, i'd invest in asthma medication, since you are surrounded on all sides by massive highways and major roads. take a deep breath, it's probably worse than living in downtown DC.

that is dumb and I am not a ph advocate

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:if rates rise it means the economy has recovered and businesses are giving raises and hiring.

no it means the feds realize they have blown another bubble.

uhh huh so you think that people will stop being able to pay their mortgages when their interest only negative arm loans are going to reset in a year?

umm, yes, b/c that is exactly what happened last time? not really seeing your point?

it's sad to be paralyzed in fear renting or just an idiot

http://www.washingtonpost.com/blogs/where-we-live/post/is-the-washington-dc-area-housing-market-bubbling-again/2013/03/25/1f73a2fa-9588-11e2-ae32-9ef60436f5c1_blog.html

[Anonymous]

Anonymous wrote:Waiting is a recipe for disaster. Houses are appreciating at a 10 percent clip. On a $600k house, thats $60k per year. I doubt the OP will be able to get ahead of that snowball unless they purchase yesterday.

OP the truth is that there is a ton of money in this area pushing up prices, particularly for 'family housing'. In order to compete in this market you must become comfortable with the idea of being house poor to 'win' a decent house, because otherwise you will continue to be outbid by those who are willing to do that.

[b[How long can double digit appreciation continue? Not forever, but certainly longer than you afford to wait on the sidelines.[/b]

This is exactly the kind of mentality that leads to bubbles.

No economist anywhere would say that a 60k increase a year in housing value is healthy. At that point, for the taxes alone, it becomes a better option to rent.

Yet reality is not dictated by if something is 'healthy'. Irrational behavior can go on MUCH longer than you can wait. If you choose not to buy today, tomorrow the prospect of EVER purchasing in this area recedes a bit further into the horizon. Good luck with that strategy.