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May 13, 2005
Housing Bubble Regionally? In the Bay Area?
According to Yahoo Finance, a Yale University economics professor presented his paper last week on regional housing bubbles. He surveyed some US cities for housing bubble related behaviors of the public. On one of the question on the expected home appreciation, respondents in Los Angeles were saying 22.5% while those in Milwaukee said 13.4%.
Second question try to get a sense of how frequent people are dicussing housing market. Two-thirds of the Los Angeles respondents said the discussion is frequent, as compared to only a sixth of the Milwaukee respondents.
How is the bay area's housing market? Is it in a bubble? When is your last time to discuss the "crazy" market?
Posted by QiRealtyEditor at May 13, 2005 10:07 PM
Comments
Real estate historically appreciate 100% every 10 years or so. The recent 4-5 years are exceptional, with many bay area home prices more than doubled. I've also heard coworkers or friend's friends speculating the market and made quick money by flipping properties. I do not think this kind of appreciation will continue. However, I do not believe home price will correct significantly either. I strongly believe real estate is long term investment, and it will give investor good return over the long run.
Posted by: Mike at May 15, 2005 08:13 PM
One of my friends had been renting in Berkeley for many years with the low rent-controled rent. They made a few attempts to make offers, but all failed. Now they are more reluctant to put in high bid. I guess they are not alone out there.
Posted by: Larry at May 16, 2005 10:04 AM
I am a beginning RE investor interested in rehabbing blighted homes for the first-time buyer market, and also in buying and renting small older homes with "charm." I have one rental and have done one rehab. I need to develop long-term plans and examine financing options. Is it better to use cash, HELOC on rentals, Cash-out mortgages after rehab...
I've even thought of seeking per-project investors with eith a guaranteed return or splitting profits for fully-invested partners.
Sorry this is off-topic. Please email me if you have any advice!
Posted by: Todd Duren at July 8, 2005 10:23 AM