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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][i] [b]And unless you overbought in a weak market[/b], it won’t take 10-20 years to regain loss. [/i]

Yes, there are pockets of real estate that suck. Don’t ever buy there. Or at least don’t buy at peak there.

Undesirable areas/properties are always the first to fall and the last to recover. And they aren’t representative of the overall market. 
[/quote]

Everyone buying right now is overpaying. Some by a little, most by a lot. And some by a staggering amount. Case in point: https://www.washingtonian.com/2022/02/18/photos-this-dc-house-sold-for-800000-over-asking-price/

That buyer will probably never get their money back. [/quote]

The asking price was very low given the unique property and large sq ft compared to comps. $800k over is misleading.

Depending on what happens, they might be screwed if they try to sell in the next few years but they will be fine. It’s a desirable area. 
[/quote]

It was an old house with minimal cosmetic updates but no major systems updates. It needed a lot of work and some really significant  remediation, as as discussed on this forum previously. This price reflects an emotion-driven feeding frenzy. Psychology, not fundamental value, set this price. And the location is not walkable. That far west of Wisconsin is not uber desirable. It’s fine, but not spectacular. This sale exemplifies every single current market failure (I’m assuming a cash offer because there’s no way this would appraise). This money is not coming back on resale, not in 10 years, probably not ever. [/quote]

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