Are we recreating the mortgage crises?

[iamwhatiseem]

Home prices right now are unconscious. Way-way-way over valued.
We purchased our home 3 years ago, and the value has increased 36%.
And that is increases you see all over the country. Crazy prices.
People buying into the market are setting themselves up for massive losses.
Imagine buying a home for $450,000, and 5 years later it is only worth $338,000.
That is not only possible, but plausible.

 

[PinktheFloyd88]

Home prices right now are unconscious. Way-way-way over valued.
We purchased our home 3 years ago, and the value has increased 36%.
And that is increases you see all over the country. Crazy prices.
People buying into the market are setting themselves up for massive losses.
Imagine buying a home for $450,000, and 5 years later it is only worth $338,000.
That is not only possible, but plausible.

Over valued how? Are people buying the homes?

Then they are not over valued.

 

[iamwhatiseem]

Over valued how? Are people buying the homes?

Then they are not over valued.

 

[Ringel05]

Home prices right now are unconscious. Way-way-way over valued.
We purchased our home 3 years ago, and the value has increased 36%.
And that is increases you see all over the country. Crazy prices.
People buying into the market are setting themselves up for massive losses.
Imagine buying a home for $450,000, and 5 years later it is only worth $338,000.
That is not only possible, but plausible.

Not necessarily a crash but possibly a small pullback if and when rates rise. Right now demand is higher than supply and we still have historically low mortgage rates besides home construction has a long ways to catch up. The primary thing missing from a big crash scenario now is sub-standard, high risk loans, if I remember correctly that was the tipping point in the 2008 housing bubble bust.

 

[Augustine_]

Home prices right now are unconscious. Way-way-way over valued.
We purchased our home 3 years ago, and the value has increased 36%.
And that is increases you see all over the country. Crazy prices.
People buying into the market are setting themselves up for massive losses.
Imagine buying a home for $450,000, and 5 years later it is only worth $338,000.
That is not only possible, but plausible.

Home prices here where I am are nearly back to where they were before the housing bubble burst in '08. So

 

[Manonthestreet]

1000 sq ft house next to my brother went for 375.........way over priced