Quote:
Originally Posted by Boomer
clouwho,
I think your last paragraph, beginning with, “The good news is,” makes an excellent, common sense point.
There is a sense of urgency created by today’s real estate market that makes the market during the early part of this century look tame by comparison. This market has a far more emotional component than that one. I think this market is weirdly a big side effect of the pandemic. We have had too much time on our hands and with that has come the urge to “do something” — and for many that has meant making a move.
You are right about “this chapter of life” where some can afford to buy whatever they want — even though they might feel like the prices are ridiculous — while others should be more circumspect.
I think we are nearing the time where the quasi-flippers might need to tread more carefully. I also think that anyone who is close to being ready to move “back home” — especially if they have a house there, too — might want to think about gettin’ while the gettin’ is good. (They can always come back and rent if they want to.)
Although. . .profit on a home that is not the primary residence invokes capital gain. This is a reason why anyone who owns two houses should be on top of saving every record of any improvements on the secondary residence to close the gap between purchase price and selling price — but people who own more than one house probably already know that.
I don’t feel like we are going to see a drastic drop like the last bubble. But this market is going to have to take a breath eventually, for a variety of reasons.
But my guess is as good as anyone else’s — meaning — only time will tell — said Boomer, stating the obvious.
Boomer
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I would agree, I think at some point it will level off and maybe even go down a bit. But I hesitate to call it a bubble. Also anyone making comparisons to 2008 are not well educated on what caused that nightmare.
We bought a home last month because we found what we wanted at a price that worked for us. We're in our mid 60's, about to retire. Time is not something we take for granted, even though we're very fit and healthy. So, "waiting for the market to cool off" was not an option. Besides who knows when that will be?
That said, I don't see the warm weather markets cooling off for a while. Too many boomers out there, and more people than ever retiring early. Many of them sick of winter and wanting to escape it.
But if any of us knew for sure, we'd be extremely rich.