Reply to There is no housing bubble in the DC area so get over it

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Reply to "There is no housing bubble in the DC area so get over it"

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[quote=Anonymous]You are forgetting inflation.  It's not just going on in DC area, this is also happening in other strong RE markets that didn't quite tank during the recession after bubble burst, but had a little bit of depreciation.  Now the prices are back to their bubble levels, not just here.  I don't see job markets picking up anywhere honestly, not like new jobs are created en masse or new companies are relocating to the already expensive metro areas, in fact, they are looking to expand in cheaper COL places instead.    The fact of the matter is that 1 mil is not 1 mil it used to be 10 years ago.  2 mil is a new 1 mil and people are not quite used to this idea.  Not just RE has gotten more expensive, prices are up for a lot of necessities like gas and food and educational services.

And, expensive metro areas do have a lot of people, who have accumulated wealth over the years working for decades in lucrative fields available in that area, plus the more recent crowd of younger high earners and those who took advantage of the tech boom and then RE boom of the 90s and early 2000s.   While some people are overextending to buy, others are cashing out from their previous home purchases and upgrading, the situation is not uniform across the board like it might have been in 2005, simply because it is harder to qualify and thus, overextend yourself to the same degree as before. 
But it is not impossible to see foreclosures in the future, especially if the employment situation of those who are more leveraged were to change. 
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