ThinkGlink.com recently sent a Real Estate Bubble Survey to 4,000 consumers. We had 475 responses, and the summary results for the ThinkGlink.com Real Estate Bubble Survey are quite interesting. The comments below are from the real estate bubble naysayers — those who believe that there is not a real estate bubble.
These are responses to a free-form survey question:
“Tell me what you think about the real estate bubble. I’m eager to hear your opinions.”
Some markets may be over priced, but in general the market is priced based on growing demand for home ownership.
Real estate does well when people have money and feel good about their future. People in finance, software and commercial businesses have done great for the last few years while communications and hardware have struggled. More people are doing really well than those who struggle most of the time. At a down turn, they go under while the more gainfully employed just stop spending freely. There are people in my neighbor who make 4x more money than 5 years ago while others were downsized and lost their homes, even cars in some cases. It has been a real estate market funded by the sectors that are wildly growing, versus those who aren’t, which are outnumbered right now.
Nothing to it.
I live in California, and I think that prices may stagnate, but I don’t think that we will see a steep decline in the housing prices in Southern California. Too many people want to live here.
The prices of home will eventually slow down based on the economy and location, location. I know the normal rate of appreciation will be 5 years.. At this time the bubble is based on local areas, this and a major factor, example in the Washington DC area where we live the prices will not slow down because of supply and demand and the Government location, the transit area. This is a metro area, we have great access, Virginia, Delaware, Maryland, DC and 4 hrs to NY. Homes will always be in demand. We need more affordable homes for low income families.
I think the price escalation will slow to 8-9% per year. After a few years when salaries start to catch up, we can see 15-20% in metro areas where the job market is strong.
Interest rates may go up, causing the market to level off, but people have to have a place to live. Housing prices are remarkably resilient over time, so I think in the long run, it will all work out. In the short run, I’m seeing more equilibrium in the market, with people putting homes on the market to take advantage of current prices. This increased supply still has not caused prices to go down, so therefore I think there is no bubble.
When the stock market started to head south 5 yrs ago…real estate started heading north. It is all a numbers game. The population in the US, and the world for that matter, continues to grow. One third of the population of the US are baby boomers with the most spending power….this same group which is around 100 million people also are in direct line to inherit from their parents. They are the driving force….numbers again. It might level out and even dip, but then appreciation and land and home values go even higher.
I live in Tampa, and am getting ready to build in Crystal River–about 90 miles north of here. Both areas are booming. Prices are rising rapidly. But this is where the people are; more are moving in daily, and that is what appears to be fueling this boom. No question that prices today are higher than the value–but apparently not higher than the PERCEIVED value. I think it may be a long time before this changes.
It has to do with two things; credit card debt and the rising price of gas. If the consumer homeowner can’t manage these two things, then it is all over.
I am a REALTOR in PANAMA CITY, FL, and we have seen a tremendous market appreciation and growth over the past 4 years, especially the past 2 years. I don’t think there would be a bubble if the media and those who drive the media didn’t hype it so much. I think we have seen a great deal of speculation from developers and investors and that has driven prices up beyond what the market can sustain. Therefore, I do think we (on the coastal market) will see a softening in terms of pricing. I expect prices to level off to a more normal basis of appreciation. I also think the interest rate increases will slow purchases to some degree, but I think the market will still remain strong compared with activity over the past decade. Rates are still good even though on the rise.
I believe that the “bubble” is being created by the media and hopeful homebuyers. I think that the the appreciation of homes is going to level out and instead of seeing increases of 10% a year we will be back to seeing 3% a year. Although interest rates are increasing they are still at historic lows and I don’t believe they will increase to a point where people won’t borrow money.
I am not sure I would call it a bubble, because bubble burst and with that comes great loss. There was a tech bubble and when that burst prices crashed. I feel that the more it is discussed the more that image is created. I would say the prices of housing have increased enormously. I do think that they should and must plateau. Since not every area has experienced this “bubble” the high-rises in housing it is hard to think that the housing economy will effect everyone. Also, this predication has been going on for over 5 years. I do think with the rise of interest rates (over 7 percent) housing will cool and even go down. I don’t think it will lose all it gains. Housing economy is based on how much someone is willing to pay for house and not its realistic value.
I don’t believe there is a bubble. The market will adjust to a balanced market and growth should slow, but not decline or burst.
Just let the market bear what it can, if it goes down buy, if it goes up sell.
It is just a pause …prices cannot go straight up forever. I believe the prices will slow to a 1.5-2.5% annual increase instead of the 10+% we have been seeing.
I think that real estate has become inflated, but a bubble would be the result of self-fulfilling prophecy.
It could be real in parts of the USA, but I believe it is mainly hype, and unsuspecting/novice/buyers-sellers could be taken during these times.
I feel that property values will slow down , but not necessarily depreciate and pop the balloon. I think a bigger economic threat is 104/107% financing and interest only and less then interest only financing. I see lenders giving loans to people who cant afford them , sell the loan before closing and those same properties back on the market through foreclosure within a year for much less then the original purchase price. If this trend continues then we are all in for one major roller coaster ride.
I think real estate will continue to increase in price because there is more demand (Population growth) vs Supply (existing land and housing) available.
Prices are definitely overheated in certain areas and cannot be sustained. In most areas, however, there should be more of a slow leak…a gradual reduction in the rate of increase in prices…than a bursting bubble. As always, people who bought at the top of the market and builders who overextended will be hurt.
We have loss of consumer confidence and rising interest rates in tandem with some horrific natural disasters, all having an effect on the cost and availability of housing. It’s a question of supply and demand. As we see more supply, prices will necessarily level off and/or come down.
Real estate prices have appreciated rapidly in the last two years, but they are not out of control. Sales are slower in the past two months, but things will pick up in the spring. The economy is still good and will stay that way for at least 2006.
There is a very small segment of the market which is comprised of buyers who are speculators. Their investment in new construction, and their hopeful ability to rent with a positive cash flow, has been greatly over dramatized. They have chosen to invest in real estate as a way to diversify their portfolio. Astute investors have been able to enter less developed markets and reap substantial profits. The media tends to “bandwagon” on a topic without doing any research to substantiate their conclusions.
I feel that there might be a bubble in rapidly appreciating areas, like the east and west coasts. However, in the Midwest, I don’t feel this is necessarily true. While we have seen significant growth in certain parts of the Chicagoland area, I think we’re pretty safe from a bubble burst. I don’t doubt that sales may slow down with interest rates rising, but I think that in Chicago, we’ll see continual positive growth at reasonable annual rates.
At least in this area, real estate agents are, maybe not lazy, but rather in a trance like state: Print it, Post it, and Pray could be their motto. There is no creative, “outside the box” thinking in regard to marketing a home…I subscribe to newsletters like this one hoping to find where the pockets of brilliance are in this country. The only other marketing tool that I’ve seen in the local tool boxes, is “lower the price.” Boring, and frustrating. What interest me is creating markets.
I don’t think there will ever be a real estate bubble. People will always need somewhere to live. With the way the population is growing, there’s no way there will be a real estate bubble.
Good for sellers, bad for buyers.
The bubble will never burst.
I believe that with the media “spin” continuing, that it is likely. I know from discussing this with two realtors, that there has been about a 10% decrease in some areas of Cobb County. With the rising interest rates, there will be some slow down but Atlanta overall is blessed with a diverse group of Fortune 500 and smaller companies; there will be an adjustment but overall no major bubble. I live in a older subdivision in Brookhaven with a developer buying 1-2 houses a month and building Mc-Mansions – so slowdown in my neighborhood:) Thanks for allowing me to take the survey. LOVE YOUR SHOW:)
There is no real estate bubble. The reporters who talk of it are just trying to find something to speak about. Some days, they are very positive and then other days the same people are negative.
A positive period of time when homes sell readily. You list them, and they go quickly off the market.
A very localized situation – such as Florida, California, Vegas, etc. Things may level off a bit but with the expected continuing influx of people into this country, as well as the normal rhythm of marriages, births, retirements, the demand for some type of housing will exist. Feel this is just one more media panic we can do without! Let the market place decide!
It seems the demand for housing is remaining strong and the long term investment opportunity is real and should last. If a person takes care of his home it should appreciate accordingly. I think of the house prices in California. That seems to be a bubble but it never seems to stop the house prices from going through the roof. I don’t know how those people can afford the homes but they sure don’t seem to be on the market long from what I’m told.
For many many years now what has happened in the real estate industry has been fueled by the media, if the media cried recession, the general public would believe this and of course we would have a recession. This is the first time I can ever remember that the media has for quite some time now cried “Bubble” and the public this time is not buying into a “Bubble” I believe that the media is not as influential as it used to be.
Prices have risen in a number of areas (e.g., “destination” places to live and/or densely populated areas, like NYC and SFO and Cal in general; also in “up and coming” — Atl, Phx, Las Vegas). Presumably, supply/demand and salaries and other economic forces support the activity. I’m fairly confident that, unless I received a big move bonus or such, I couldn’t sell my house and take that yield and enjoy something comparable in San Francisco.
I personally think that it is slightly made into a big deal, but prices have changed alot and that’s why I am looking forward to getting into the field
I think that with the increased Latino population working hard and buying houses here, it is feeding the demand for housing. Drive down the highway, isn’t it just so crowded, no matter where you are. Here in Massachusetts we seem to have such an increase in population, and this, of course, is why housing remains where it is. I don’t think there is a bubble; this is just the world today, 2005!!
In my three-plus decades as a SW Washington State Realtor I’ve never completely understood the term, “real estate bubble”! Housing is driven by simple economics of supply and demand like any commodity. As the supply and demand of housing goes up and down so does the pricing. Relating to a “bubble” implies the demand for housing is so hot home values are bound to drop so suddenly and drastically many people will be caught and lose their shirts. I believe this to be an exaggeration. Home ownership has show us time and time again, better than most other commodities, that market declines are have always been followed by gains, gains followed by declines, etc., but all in all our country has gained by our real estate holdings. In general, look at the average price of a home in the country 50, 30, 10 years ago and then today and tell me what you find. I do not believe that our current housing market has any such “bubble” in our Pacific Northwest region, only a softening in real estate prices has set in and will occur with an expected growth of 4-7% a year.
There will always be a need to buy and sell real estate is this country. The media and real estate companies need to slow the talk about the bubble because it is causing people to rush into the market before they are ready. In fear of missing out on a good deal.
word of talk,i dont think their is one
It is a drummed up idea and the only people who benefit from this discussion are the economists who think they always have the answers.
I think its just a price adjustment homes still continue to sell but not maybe at the high end 1 million and up as fast. lesser price ranges seem to still be doing fine
I think with interest rates rising we will see a slow done in sales (demand) and that will slow price increases. I am concerned however that some speculators may be over extended on pre construction purchases. If they have to hold longer than expected they may begin to dump at lower prices.
I really don’t think there is a real estate bubble. I think there is a demand for housing and that will always keep the market moving. I think it will ebb and flow but steadily move along.
The only bubble is the one that television networks are inventing. This is very much like the tales of mass murder etc in New Orleans following Katrina-which we now know never happened. Remember the huge Y2K non-event??
Real estate prices have risen more than normal the last few years but the growth rate will taper but I don’t see any big drop in prices. There may be some local drops but they will be tied to other economic factors such as layoffs etc.
I don’t really know what a bubble is, but all I do know is that the housing market has gotten so expensive that it does not leave room for the average middle class family to qualify for a home. I sure hope that the pricing will come down by next year.
I don’t really believe it’s going to be a bubble burst. I think the real estate market will just become more realistic. The market has turned a bit, but it’s a bit more even. Not as many multiple offers, and the offers are closer to the list price rather than going way over.
The more talk about a bubble, real or imagined, will simply cause people to think it is real and stop buying property out of fear of the unknown.
I believe in SFR, condos, Townhomes and multiunit property purchases for people to buy for personal and/or investment useage. About the Bubble: here we go: There is a God, and nothing has evolved without a divine intelligence. Nothing came about without a god. That does not mean that evolution is groundless. God and Evolution live in harmony. There are 1/3 of the American population without home ownership. Many of that count would like to own. They will try to own if they can afford to own and find something suitable to their needs, tastes. The market will adjust the prices until more and more people buy, until more and more people sell, until everyone has as many ‘homes’ or investments as they want. Period. End of bubble. But not everyone takes a bath at the same time, so some bathtubs or showers are empty sometimes, and other ones are full to overflowing. ANSWER: Buy using common sense. Sell using common sense. Wait using common sense. Investigate using common sense. Trust using history, common sense, desire and belief in a God that the weather will be worse outside of a home sometimes and so a home makes common sense to have. OK?
I really have to wonder how much higher real estate prices can go in certain areas of the country without a corresponding increase in wages or salaries. Whenever we consider a relocation with my husband’s employer, the first thing I do is pull up realtor.com and look at the prices on comparable houses in the area. I have really hard time forking over $500k for an 1800 square foot house. I am also concerned about interest only mortgages and the potential fall-out from those, rather than a real estate bubble. I think too many individuals are overextending themselves in hopes of profiting off of rapidly rising real estate values. We could afford (on paper) a $500k house, but I like to sleep at night, plus have a pile of cash rather than be house rich and cash poor.
I don’t really think there is a bubble. It is a simple truth of demand and supply which will slow down if interest rates get higher
Real estate in certain areas will always be high. The economy tends to expand and create demand from new buyers due to reaching adulthood, job changes to new cities, immigration, and opportunity to live better. The idea of buying and staying in the same home for decades is a done as expecting to stay with the same large corporation or get your pension.
The country has been in an incredible uptrend with respect to real estate values for the last 36 +/- months for various reasons. One certainly being the historic interest rates and significant investor activity. I believe there are certainly areas in the country which cannot sustain their rates of appreciation, however there usually is not a correction of equal % across all markets. I live in the greater Sacto, CA area and the current market values are not attracting the interest within and outside CA markets as it did in the past for obvious reasons. Current listings are the highest since 1995, the 1st sign of a slow down. I am a residential real estate appraiser and my orders are off 40-60% in the last 90 days.
I think it will be possible in certain areas of the country, mainly the coasts, but won’t be and isn’t a factor anywhere else.
It’s only in specific areas
Depends on where you live. Market good in Atlanta
I don’t think there is a bubble, just a possible slowdown. Next year will be slower in the industry than this year.
I think that like everything else today, the cost of materials and land is rising. So, the cost of new homes will rise also. If the cost of new homes rise then the cost of existing homes will rise as appraisal values will go up. I don’t think there is a “bubble” but I do think certain areas are seeing growth due to new jobs and lower costs of living. For instance, you can get the same paying job in the Midwestern cities that are in the Eastern cities but have a significantly lower cost of living. That gives rise to the theory that there is a bubble because more homes are being built, bought and sold in a certain area.
There are always bubbles in specific geographic areas where jobs are lost, however I think your question is for the national picture. Homes are still the place to invest vs the market, jobs are good, unemployment low and foreign speculators are buying property. Baby boomers are buying retirement homes…so no bubble.
I don’t think there is a RE bubble. I think there is a mortgage loan bubble. Folks that were convinced they just had to have that $500,000 house, and why, lookey here, you can afford the payments by only paying the INTEREST for a couple of years. I would call it what it is going to be…foreclosures and forced RE sales.
In So. Cal it is supply and demand. The beach communities are overbuilt already, but everyone wants to live here.
I feel that at the moment people are a bit unwilling to pay to much money for property.
We operate a real estate team in coastal North Carolina and sell a lot of resort property. We have seen an unbelievable increase in prices over the past three years. We are in an area that is lower priced than the coastal properties to the north and south so I do not believe that we have seen the last of price increases. Do I believe in the “bubble”. I would say that we will experience a real estate “mesa” or “plateau” within the next year. I see the increase in prices slowing but I do not see a bust or downward pressure of prices. Next year I believe the prices will be as high or higher than they are today. Where we have had double digit increases in prices, I see a single digit increase in the near future. This event has happened more than once over the past years. You have a major growth in real estate prices and then a flattening. I can not comment on other areas since real estate prices are goverened by local issues. I have been involved in real estate development and sales for the past 40 years and can say that real estate has performed better than any other investment over the long haul. There has been so much greed and corruption within the security industry that I feel that most people have lost faith in securities. Unless the government or the SEC does more to enforce the rules or gets some control over these public corporations I think that real estate will continue to be a better investment for the average person.
It is a Media hype! Statistics do not support the claims. The financial industry is trying to generate investing by saying there is a housing bubble. You may have pockets of real estate that is not appreciating but housing needs are directly related to employment and employment causes a need for people to live some where.
Las Vegas is a unique market and not subject to the same market forces as the rest of the US – it continues to be a hot market although the prices have now stabilized from the frenzy of 2004 and a property stays on the market slightly longer. A bubble indicates a burst with subsequent drop in pricing but I don’t believe that will happen here as Las Vegas continues its growth as a tourism area as well as a place to life by choice.
I think the recent increase in marketing times and supply are directly related to increasing interest rates. Market demand was especially strong due to the record low rates, and now that rates have risen, supply and demand are getting back to normal.
I live in the Northern Virginia where in the last few years, the assessed value has tripled, quadrupled in certain areas. I think in these areas, real estate bubble will not happen since a lot of the properties were under valued for a long time. We are so close to DC that as long as the government operates out of DC, this area will probably never suffer the bubble… of course, the prices will eventually stop rising and it’ll be at a steady price. I’ve seen the houses stay longer on the market, but eventually, they end up selling. I doubt Northern VA real estate will not suffer from any bubble any time soon… although renters do wish there will be a bubble…
It is all about the level of interest rates. The lower the level of interest rates the more attractive real estate is as an investment or a more affordable purchase for individuals. Real estate has been on “sale” because of low interest rates. People like to buy things on sale. The concept of a “bubble” is the fact that demand significantly exceeds supply. As rates gradually increase, demand will decline. Will the bubble (demand) burst?… I don’t think so based on the Fed’s current monetary policy.
I don’t think there is a bursting of a bubble so to speak but rather a “market correction”. Sales and prices rose at a tremendous rate and I think every agreed that it had to end or at least slow down at some point. People started to think they could ask whatever they wanted for their homes and they would sell in a week. And for awhile they were right. Now buyers are shying away and prices are starting to come off. Real Estate is cyclical and another boom will come
As a real estate appraiser in the metropolitan Atlanta area, I have not seen any evidence of a real estate bubble. Nor, do I think there will be one in the near future. In my opinion, this is just another example of incomplete and not overly accurate journalism.
I believe there will probably be “bubbles” is some parts of the United States, but Nashville and Middle Tennessee have so much going for us at this time, we may not be effected as much as other states. If homeowners keep their “heads on” and do not try to take advantage of the so called “bubble”, their home values will continue to increase, as they have over the past few years. It is those homeowners that react too aggressivly who hurt our market!
In my area, Portland, Oregon, there is no “bubble” there was a shortage of housing do to an influx of people into the area and an urban growth boundary. Prices here were grossly inflated because of “supply and demand”. Houses were selling for over asking price with in a week. That has stopped and the grossly over priced houses are not selling anymore.
I don’t believe what we are experiencing is a bubble. It’s a matter of supply and demand. In the last couple years there has been more demand and very little supply. Many are under the impression that the bubble is about to burst because they see a decline in home prices. This is a matter of we simple have more inventory now. Sellers must adjust their price to complete with the competition. If you’re the most over-priced home in the neighborhood, nobody will be interested.
Some areas of US may have inflated real estate values but real estate markets are very local. So reporting on a bubble nationally is somewhat irresponsible.
I don’t think it will be a bubble as much as a plateau. Prices have gone up so much in our area, but the area is still growing and with more people wanting to move here I just don’t see prices going anywhere but up.
I’m in Las Vegas, we seem to be recession proof. RE may cool and level off but will not nose dive. And if it does the people who have planned and saved will be in a position to snatch up a glut of foreclosures to use as rentals until the market rebounds and then sell again. Thank you for your time.
Prices have been increasing over the last 5 years or so. With the stock market taking a hit, many investors looked at the real estate market. The increased demand raised the prices, and this in turn encouraged developers to build more buildings. With the baby-boomers reaching 60 next year and for about twenty years after, there is more demand for housing. Some areas, however, have seen a tremendous increase in home prices. It is in those areas that the curve is reaching a plateau; the plateau took a number of years to be reached, but eventually prices should stabilize. I do not foresee a burst, but probably stabilization or a slight decline. As opposed to stocks, there will always be a demand for houses.
In my neighborhood houses sell after a short period and after a long period; it seems to depend on the condition of the house and its proximity to the highway. But the brand new houses in a few subdivisions over are priced sky high (3X) and they seem to sell in a short period of time. Perhaps that has to do with financing? I don’t perceive that there is a bubble.
There may be a bubble in select areas. People in those areas could be affected, if they had to sell their house during a downturn. Speculators have the most risk. I really boils down to how leveraged you are and how capable you are of handling a disruption to your income stream.
For the most part I think its a creation of the media and/or “expert talking heads”. There can be bubbles in certain markets, but to claim a real estate bubble throughout the country is inaccurate in my opinion.
Having been a real estate agent and investor for almost 10 years now, I do not believe that their is a bubble. I believe that some markets, such as Miami, Ft. Lauderdale, Las Vegas, California are overpriced and will have to do a correction at some point. However, real estate as a whole is not in a bubble simply because it is a basic need. As long as it is a need not a want it could never been in a bubble.
I just don’t think there is one — it’s all media hype.
The Atlanta market continues to be relatively strong. Houses still need to be priced right, maybe even a little low, to catch a buyer. In the areas I know, I really don’t see signs of a bubble.
I happen to be a real estate agent and don’t believe there is a “bubble” to worry about. I also don’t think that talking about it will make it happen. People are smarter than that. We’ve been through many tragedies in the last few years and the real estate market has held strong. It used to be easier to predict the ebb and flow of it, but I don’t think it’s going to burst. I think we’ll see a leveling off as interest rates rise…but ultimately it’s the public that drives the real estate market and they certainly don’t have any interest in seeing a supposed “bubble” burst.
Speculators may have created some significant overpricing in some areas and in others prices may be a little ahead of themselves. for the most part however prices seem fairly reasonable when you look at demand and what you are getting for your money.
I don’t think there is one. I think this is just a real estate cycle with hills and valleys.
It may a bubble on the condo market were speculator bought condos with the hope of making huge profits
I hate to sound like most talking heads but I agree that the so called bubble is limited to both coasts and some hot areas like Vegas. You just need to go to places like Chicago and Indianapolis and Columbus and other Midwest and southern states to see a more realistic market.
My only experience is in the Florida market, as a Realtor for Prudential Florida WCI Realty. What I see is that the baby boomers are getting ready to start retiring in the next two to three years and they are going to want to retire in warm weather states like Arizona, Florida, Texas, or New Mexico. The have more money than any previous generation ever, due to the wealth created by their parents who grew up during the depression and saved. California , and some of the rust belt states like Ohio, Illinois and the North East should see a bubble, due to decreasing populations, corporation and job loss decline in said areas.
Real Estate prices have been pushed up by the low interest rates. Everything happens in cycles and housing prices will and have begun to steady themselves. There will be some areas that will lose some value due to overinflated prices to begin with, but overall I don’t think that all housing prices will go down.
I believe that property will go up in value but not at the rate for the last 4-5 years. This pace cannot be kept and keep homes affordable. Compare this to the dot.com era which could not sustain the growth in stock value. Appreciation will revert back to what is considered normal, about 2-3% a year which is the way it has been for many years before the real estate explosion. Money that was in stocks had to be invested somewhere and real estate was the answer at that time.
Houses may and probably will level off, but I really don’t think they will drop in price.
I don’t believe in a bubble or the bursting of it. It’s something I learned in Economics. The more negative the people feel about the economy, the more the economy will fall, and vice-versa. Real state should always be a good investment in this country because there is a lot of land available and the growth of this country in unstoppable. There will always be people buying and selling; we need to stay positive.
I am in CA and there’s hardly any unemployment here. Last time we had a big drop in CA real estate, it was after we had a big job loss from aerospace and other jobs. I don’t see a job loss like that any time soon. Having said that, I also don’t think prices are going up very much for high end homes anymore. I expect this market to tread water for a few years.
I think the when there is demand for real estate then the prices will go up because the buyers are bidding, but once there is no buyers then it will just rest but I don’t think that the prices will go down. The only downside I see is that when the prices go up so fast a lot of people will not be able to make their dream come true of owning a house.
I live in Atlanta. I do not believe there is a bubble here in Metro Atlanta. There may be a bubble in Boston, San Francisco, etc. but in the south we are fortunate because we have an ample supply of low wage workers (Hispanics from Mexico and Central America. I read the Atlanta Journal/Constitution and Newsweek. I haven’t read anything about a bubble.
Maybe in some areas of the country real estate prices have accelerated because of some unrealistic expectations by investors, but, in general, real estate values will, at the very least, stabilize, and, over time, rise.
My area is overpriced, but selling well. As interest rates rise sales will slow down and balance things out.
I don’t believe there is a bubble. The bubble has been talked about for years… and still it has not burst. Federal Reserve Chairman Alan Greenspan and his newly appointed successor Ben Bernake believe the cycle will return to a normal market in 2006.
As a real estate agent the past 13 years, I have seen cyclical patterns, ups and downs. I have heard how bad the “economy is” and still sold many homes….the negative attention that the media puts out is just that…negative attention. Atlanta has had a steady pattern of home sales/pricing for quite a few years, and I haven’t seen any wild extremes, therefore, I feel that if a “bubble” were to exist, we would not see it here in Atlanta (comparing this to the California market)
I don’t think there is a bubble. Rates inching up and the values becoming more realistic. Media depression sessions. Across the street, homeowner, being to greedy, along with greedy salesman. Lowered price to a real figure, guess what?
I live in Tucson AZ, and Tucson is a town that is growing, BIG TIME, and is at the beginning of it’s growth cycle. We are feeling, what I believe is a residual effect, from the national talk of a real estate bubble. This media blitz of course affects everyone, in terms of their thinking about the market, whether or not it is applicable to their (local) market. The prices and appreciation here in Tucson are not and have not been anywhere near the levels reported in some of the HOT-HOT markets. Yet the mindset affects everyone.
There is no “bubble”. Some areas may have experienced growth due to cities with one industry that may have done well. Such as Ottawa Canada were the technology industry experienced rapid growth driving up prices of real estate (high demand high price). This has leveled out since the tech market correction. A healthier more balanced market will keep prices from falling.
I live in the SF Bay Area. I expect some homeowners to get squeezed in the next few years, as they took on risky loans (i.e., interest only) and rates are increasing. However, there are still a ton of people on the sidelines, waiting for the market to ‘correct’. Once the market flattens, there will be the anxious buyers, ready to get in. I know of some who have sold their house and are now renting. If things don’t correct in a hurry, I don’t know how they’ll ever get back in this local market.
It may go down in some areas, but unless the markets goes down, or a threat from outside of US, we should see a slow growth. What we need to do is make people aware what happens 10 years from not. I have two properties. Some of my friends said don’t do it. They are in an apartment; I have over a million in assets. It’s context about history we need to promote.
There maybe specific areas of the country that may experience a slowing or even a decrease in pricing. But potential buyers and sellers will just wait it out until things improve. We may have a slowing or lull because of the price of construction materials increasing rapidly and buying power reduced because of energy costs. The recent hurricane catastrophes will put pressure on building material supply and costs. Builders would be wise to construct energy efficient homes, because buyers will demand them. Buyers will start looking more at the quality of the home and the overall living environment instead of the size of the home. Buyers want to create an environment. The home will become their source of comfort, entertainment, social environment and security.
Houses in Bakersfield are taking longer to sell. The demand is not here anymore. I don’t know if it’s because the money is tight or the prices are too high.
I don’t think there’s a big risk in Chicago, but the prices in certain neighborhoods, such as Lincoln Park, can surely not survive the continuous rising price tags. There is such a dramatic difference between what $300k will buy you in LP or Bucktown vs. 1 block west of their western border.
I live in Atlanta, GA. I have heard that the area is not in a bubble at this time. I really don’t know. We have been in our home 36 years.
What bubble? I’m in California’s overpriced market. I cannot afford a home here after working and saving for the past 10 years! I was told to have enough for a least a 10% down. Well each year the price of homes have skyrocketed and now we are completely priced out. We are moving to Georgia next summer.
Want to hear what the other side thinks? See the comments from those who believe there is a real estate bubble. Want more than just the comments? See the ThinkGlink.com Real Estate Bubble Survey Results Summary. Are you a journalist who’d like to speak with Ilyce Glink about the real estate bubble survey? If so, contact Ilyce.
Published: Nov 30, 2005