[FoRK] Does this real estate boom remind you of the dot-com boom?
sateesh.narahari at gmail.com
Tue May 17 12:55:00 PDT 2005
In the bay area, I hear the following reasons why the housing market
only has one direction to go: up.
1. There isn't any new land being created, only new folks coming into the state
2. Houses are tangible things unlike stocks, and if prices don't
appreciate, people won't sell
3. Housing market has always gone up
4. By historical measures ( who knows what they are), the housing
market is still way underpriced.
After hearing all these reasons, I am not quite sure if it is a time
to be buying a house....
Most likely scenario will be no increase in housing prices, and market
turns to buyers market, and then price drops, probably over a 10 year
On 5/17/05, Jeff Barr <jeff at vertexdev.com> wrote:
> Fellow FoRKers,
> Back in 1998 and 1999, hallway and lunchtime conversation would quickly
> turn to "the market" and the latest hot stocks, the newest IPOs, and how
> wonderful, ever-lasting, and "different than last time it all was." The
> attitude was "jump on quick, this train is leaving the station."
> Suddenly (at least here in the suburbs of Seattle), real estate feels
> the exact same way. Everyone is talking about it, everyone is sure
> that the prices will go up forever, and more than half of the
> families we know are in the process of moving to larger homes (after
> relative stability for the past 5 to 7 years). People express
> amazement at the value of their current homes, mortgage offers flood
> my mailbox, and so forth.
> The interesting questions are: When and how is this all going to
> end? Will it be with a bang (sudden devaluation) or with a whisper
> (longer time on the market, little or no appreciate for an extended
> period of time)?
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