Real estate bubble.

[peggus]

So my wife has been nagging me to post something in my livejournal and I finally gave in I guess. First I just wanted to say hello to the nice ATP people who befriended me and apologize for not replying to them

Comments

[masqthephlsphr]

Do you think this holds true for San Francisco as well? The market has gone steadily up since the early 90's and I already find the continuing rising of prices and # of home-buyers beyond credulity.

I bought a small condo two years ago, a studio. It's all I could afford without an interest-only loan. When my realtor first suggested such an option, I thought she had to be making it up. WHO would do that? I thought. Someone who is low-income like me and desperate to actually have a bedroom, I suppose.

Well, I should resign myself to the fact that I will never be able to sell this place for what I bought it for, unless I sell RIGHT NOW, which I'm not going to, 'cause where would I go.....

[knullabulla]

I wouldn't worry about it. You picked a mortgage option that you can afford, even when the bubble pops, right? So just stay put until the prices creep back up again. It's not uncommon for people to buy a home at, say, $200k in year 1, have the value drop to $100k in year 3, and then end up at $210k at year 5. Or whatever. It all goes up and down like a really annoying and expensive rollercoaster.

[masqthephlsphr]

Guess I'd better settle in and start feathering my nest, huh?

: )

[peggus]

From what I understand SF has a crappy rental stock due to price control and people actually want to live in SF as opposed to the inland empire.

While SF is certainly inflated I would guess you'll see less of a drop there than say in the inland empire where the rise is fueled mostly by speculation.

(no I'm not a big fan of the inland empire)

[midnightsjane]

I live in Vancouver, B.C. where the price of houses are in the astronomical range. I thought about buying a condo, and looked at a few. One was about 700 square feet, and was priced at over $350,000. I've decided it's not worth the headaches, and also the risk that what I would be buying would be a leaky condo. There have been huge problems with that here: builders keep building as if Vancouver was in southern California, not on the very rainy west coast of Canada. There are many, many condos which have ended up costing their poor owners thousands and thousands to repair. I guess I will continue to be a renter. Good thing I like where I live!

[midnightsjane]

price of houses are in the astronomical range Oops. I mean the price is in the astronomical range. Just had a visit from the grammar police..