[QUOTE=turbo_pwr,Mar 22 2005, 04:09 PM] I don't understand why so many people think the market will crash.

 

Thank you.

I am a realtor.

Inventory has been VERY scarce lately. Things are going over 100k above list price. Multiple offer situations abound, and my own buyers are getting pretty darn irritated at the situation. At the same time, my sellers are loving it!

I dont understand where the bloody money is coming from, in some cases.

But crash? I think not. There is a fundamental supply issue here, and there will always people looking to purchase in a social and economic hot-bed like the bay area.

This may not necessarily be true of the rest of the nation.

 

Crash...not likely, small correction, yeah that could happen. Example 600k house now goes for 550k in a year or two, not going down 200,000 or something crazy liek that. The people speculative buying and those buying to sell quickly will be hurt the most.

 

[QUOTE=2002S2K,Mar 22 2005, 07:55 PM] Crash...not likely, small correction, yeah that could happen.

 

I'm saving my money and hoping that the housing market crashes. The prices in Hawaii are crazy. A condo that sold for $300k two to three years ago is now selling for $450k plus. It's crazy. It's a shame I didn't make the money I make now, I would've picked up a couple properties and be a happy seller.

 

The house price in Orange County had a big correction in the '90. It had highest price per square-foot in 1990, then price kept going down until it hit bottom around 1996 - 1997, most area lost about 30% to 40% from peak. Most people who bought a house in Orange County from 1988 to 1990 suffered a large lost if they sold before 1999.

 

jezus! that's a lot of money to lose if for some reason you're not able to ride out that 6-7 yr period. even with the possibility of refinancing, if the house is worth less than the original mortgage value... you're up a creek.

 

remember, even a small correction can wipe out someone's investment if they don't have much equity.

 

Dan there was a major correction in the NYC area not to long ago...and the term crash can mean different things to different people. I dunno, I think some of the prices are craazzzzy in my area and there has to be a ceiling somewhere??? A house that sold for 250-280k ten years ago is now getting about 450-530k, wheere the ceiling for this house? Is someone telling me that it'll be worth a Mill someday in the near furture the way things are going?

 

I don't remember the major correction. I probably wasn't looking at property back then. I just know that since the mid 90s when I started looking, it's only gone up. There is a major reason why housing in NYC is getting more and more expensive though. It's simple supply and demand, there is no place to build new houses. That's why so many areas have been rezoned to be multi-family houses. People are tearing down single family homes and rebuilding them as 3 family houses all over Queens.