Another Housing Bubble?

[jwoodie]

I am starting to get worried about another housing bubble getting ready to burst. Housing prices have regained most of what they lost after 2008, but how much of this is due to a downturn in construction during the ensuing period and ultra low interest rates? Rental costs have skyrocketed, suggesting that the pool of qualified buyers may be shrinking. What is going to happen when the Baby Boomers start dumping their big houses for less costly retirement accommodations? The succeeding generation is both smaller and poorer. Is it time to sell NOW?

 

[Bruce_T_Laney]

I am starting to get worried about another housing bubble getting ready to burst. Housing prices have regained most of what they lost after 2008, but how much of this is due to a downturn in construction during the ensuing period and ultra low interest rates? Rental costs have skyrocketed, suggesting that the pool of qualified buyers may be shrinking. What is going to happen when the Baby Boomers start dumping their big houses for less costly retirement accommodations? The succeeding generation is both smaller and poorer. Is it time to sell NOW?

Generation X and the Baby Boomers are either heading into their retirement stages of life or twilight years and have no need for that three plus bedroom in the burbs anymore.

I have said many times live simple and your life is easy.

Another crash is coming and it is going to hurt!

 

[DGS49]

As an "aging Boomer" I can tell you that the housing market where I live ("Steeler Country") is quite irrational. Townhouses are springing up like dandelions, but they are not as well constructed. Developers are getting between 4 and 5 hundred thousand for modest-sized, poorly constructed cracker boxes, while larger custom homes are selling for the same or less. But with a townhouse, you get to pay a couple hundred a month for someone to cut your 8 square feet of grass!

The Big Picture is that NOBODY understands why interest rates are so low, so NOBODY understands when they will rise back up to historical averages of 4-8%. And when that happens the market will tank. But we are in uncharted territory...maybe interest rates are down for good.

It is insane, but like I say, nobody understands why we have what we have right now.

 

[EdwardBaiamonte]

, nobody understands why we have what we have right now.

I thought we have it because even very low interest rates wont stimulate a socialist economy?

 

[rightwinger]

I think there is a lack of qualified buyers. Either they have bad credit or are saddled with hundreds of thousands in student debt. Millennials are not in any hurry to buy that first house

 

[EdwardBaiamonte]

I think there is a lack of qualified buyers.

yes, in a libsocialist economy people get poorer and less qualified to buy houses; yet stupid liberals want even more socialism despite the obvious ways in which it discourages rich and poor alike.

 

[rightwinger]

I think there is a lack of qualified buyers.

yes, in a libsocialist economy people get poorer and less qualified to buy houses; yet stupid liberals want even more socialism despite the obvious ways in which it discourages rich and poor alike.

Capitalists keeping the workforce hungry

 

[EdwardBaiamonte]

I think there is a lack of qualified buyers.

yes, in a libsocialist economy people get poorer and less qualified to buy houses; yet stupid liberals want even more socialism despite the obvious ways in which it discourages rich and poor alike.

Capitalists keeping the workforce hungry

right!!! capitalist work force is hungry while work force in Cuba gets $24/month/ per person!! See why we are 100% positive that liberalism is based in pure ignorance?