Now that the feds are raising rates is it 1994 all over again???

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1995 c220 (harness issues sold)
1999 clk 320 cabriolet

i hope it crashes so I can buy a house and then refinance later if the rates go back down

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1995 c220 (harness issues sold)
1999 clk 320 cabriolet

Please say it's not! I just listed my house for sale today! So if it does pop...let it be just after I sell:p

Yes my fingers are crossed.

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1992 500SEL 25K
1995 E320 40K
1995 SL600 120K
2002 JX8 Sport 43K
2005 Volvo S40 95K
2006 Isuzu NPR 304K (Frankencamper)
2007 Crown Victoria 150K
2014 Smart Electric 20K

I hope not. You want money in your neighborhoods. Wealthy people bring all kinds of disposable income and they need a place to spend their money. I'd like them to spend it where I live instead of in the Bahamas. High home prices are kinda like seed money for the community. The wealth that moves in creates lots of small businesses which in turn creates jobs which in turn creates more wealth.

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You don't need a weatherman to know which way the wind blows - Robert A. Zimmerman

What signs has anyone seen that the housing market is a bubble? And what might indicate a slow or fast leak? Interest rates are up about 1.5% to 2% from recent lows and there is no shortage of builders, sellers or buyers, at least around here....

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...Tracy

'00 ML320 "Casper"
'92 400E "Stella"

Fundamentally your statement is correct, but people are shopping payment these days vs. price so if interest rates go up it will have an adverse affect on values, which will result in more of a loss of wealth to the owner.

On the other hand people have been paying waaaaaaaytomuch for sub 150K homes, when the market softens it will take several years to equalize. Which means banks will be holding unsecured paper, which will have a disastrous effect on the economy. Fannie Mae- Freddie Mac is holding 4 trillion in paper can you imagine the effect if they run into trouble?

New home starts may be up but lumber has doubled in the last 18 month and steel is equally as bad.

I recommend not investing in RE at least for the short term and wait and see what the RE correction brings.

I guess if you pockets are bursting with cash and your in for the long run go for it, but anything outside of a 6 month turnover for me is way too long.

Personally, I'd like to see interest rates balloon back up like the Jimmy Carter days. I remember those 15%+ muni bonds. Life was superb! I've never been one to borrow money for anything. The higher the rates, the more I like it.

They just need to hold on for another 4 or 5 months so I can sell and move. I can't believe what cracker-box homes like mine are selling for out here right now! I'll be able to get more than double what I owe on it, which'll give me a good down on a home in Utah where prices are stagnant.
Then let the bubble do what it may!

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past MB rides:
'68 220D
'68 220D(another one)
'67 230
'84 SD
Current rides:
'06 Lexus RX330
'93 Ford F-250
'96 Corvette
'99 Polaris 700 RMK sled
2011 Polaris Assault
'86 Yamaha TT350(good 'ol thumper)

Don't worry, it's coming. As MedMech said, lumber and steel is up, so is oil. Those are the fundemental leading indicators of an inflationary period and exactly what happened in the 70's.

Real estate is a very localized thing. When you look at a national average the highs are always too high and speculative and the lows are really depressed. There may be a bubble in that people falsely feel that they can take on to large of a monthly note, but credit card debt is more of what I’m considering here. There’s a lot of a feeling of false prosperity, and that can go away very quickly. Re interest rates: better be in the short end (90 days or even less) on the way up, and then switch into the long end (bonds) as rates move lower. RE is just the opposite – lock in the good long rates – borrow cheap, lend high, but right now if you really need to finance it – I’d sit on cash, bargains just may appear.

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89 300E
79 240D
72 Westy
63 Bug sunroof
85 Jeep CJ7
86 Chevy 6.2l diesel PU

"The object of life is not to be on the side of the majority, but to escape finding oneself in the ranks of the insane."
Marcus Aurelius

its not unusual for someone to buy a $350,000 house on a 1/4 acre lot, just to tear down the house to build a newer bigger one.
In the South Bay – Manhattan,Hermosa and Redondo Beach – in LA, that’s the only way to go.

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89 300E
79 240D
72 Westy
63 Bug sunroof
85 Jeep CJ7
86 Chevy 6.2l diesel PU

"The object of life is not to be on the side of the majority, but to escape finding oneself in the ranks of the insane."
Marcus Aurelius

I'm looking for a house right now but have been having second thoughts about whether it's a good time to buy. I'm afraid that I'll be buying at the very top of the curve.

In Seattle there seems to be a low supply of houses for sale that in turn, cause a bidding war. For example, I bid full price on a house last month ($425K for a 3br/1ba in seattle) and didn't get it. Someone had offered $45K above asking price and agreed to buy it without an inspection! I'm really not willing to take that kind of risk.

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I'd rather argue against a hundred idiots, than have one agree with me. — Winston Churchill

Back in '97 (when we built), the low home prices in our community was one of the best-kept secrets around.

When the other areas became landlocked, new home prices skyrocketed, and more people began to look at our area...so our home values shot up a few years later.

Our area has now become landlocked too, and although the home prices have flattened out, the taxes have become an issue. We don't have much in the way of large business and retail chains to absorb the tax base, so much of it trickles down to the homeowners...

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2009 ML350 (106K) - Family vehicle
2001 CLK430 Cabriolet (80K) - Wife's car
2005 BMW 645CI (138K) - My daily driver
2016 Mustang (32K) - Daughter's car

I'm going to look at a new townhome today...This will be my first Home. It is a sellers market around here...There is nearly nothing to buy because of the influx of people. There is construction on every corner.............My buddy's next door neighbor sold his house on Wrightsville Beach Last Friday for 1.4 Million. I drove by yesterday and the house is gone, and is now reduced to a lot and a tiny one at that.....BTW its not water front.

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Brandon



2008 S550
1957 Dodge D100
1967 VW Microbus 21 Window
2001 Suburban
2004 Beach cruiser bicycle
-----------------GO DUKE!-----------------

"It cannot be emphasized too strongly or too often that this great nation was founded not by religionists, but by Christians; not on religion, but on the Gospel of Jesus Christ. For that reason alone, people of other faiths have been afforded freedom of worship here." Patrick Henry 1776

look around and see apartment complexes offering 3 months rent. do you think they may have an occupancy problem.

at some point it will spillover to the "house" market then everyone who wants a house will own one then watch out.

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Jennifer
90 350sdl