Do You Think The Housing Bubble Will Burst Soon?

Lee

Senior Member
Location
Chatham, Ontario
Not sure about the USA but here in Canada some areas are experiencing record levels of rising real estate.

I consider myself fortunate that I bought when I did a little under two years ago and could sell today and make a substantial profit.

Cash out and go into a nice apartment? Or move to a different area where real estate is still affordable. Would like to wait a little bit, just not quite ready but worry about a crash.

Your thoughts.
 

I think it's hard to tell when the housing bubble will burst, especially with the affects rising COVID cases are creating. The USA has definitely seen an increase in housing prices. Someone posted in another thread how not only are prices higher, people are paying more than the asking prices. If you sold would you be considering a condo or senior housing? Have you started researching where prices might be more affordable?
 
When interest rates go up the real estate market will cool and prices on existing homes will stabilize or drop. New construction will be out of reach for many.

IMO most people focus on the monthly payment they can qualify for and don’t really concern themselves with the value or cost of the property.

High interest rates translate into high payments and less home for the money.

Renting won’t be much different. If people can’t buy a home they will rent and those rents will go up as the demand for apartments increase.

IMO the only way to ‘win’ is to cash out and move to a cheaper part of the country.

Good luck!
 

Diva, yes, I have started looking online. Before I bought this place I was worried sick about becoming homeless. Hubby and I were living in a summer trailer as we did not research and sold our home without thinking of the consequences. Our thought was an apartment and a summer trailer.

Apartments were impossible to find, hubby had just had major surgery and October was approaching when the summer park would close. I got in touch with a realtor who took pity on me (tears helped) and bought a mobile home in a mostly senior park for $87,900 and watched with disbelief 6 weeks later when an identical unit sold for $130,200 so timing was perfect.

I did put around $30,000 into it, and a lot of sweat equity.

Today it is no exaggeration this place would sell between $210,000 to $220,000 and in this park they sell often the same day, no kidding, but I hesitate as apartments are still hard to find.

I am thinking the Atlantic provinces of Canada or Thunder Bay or perhaps Manitoba.
 
The Florida real estate bubble of the 1920s is a good lesson (https://en.wikipedia.org/wiki/Florida_land_boom_of_the_1920s ).

It was probably the worst bubble in US history. Prices in the 1920s rose to levels that did not recover for many years. I understand some of the land still has not recovered to what it sold for almost 100 years ago. Probably swamp originally sold as "waterfront".

I grew up in Florida in the 50s and 60s, and the impacts were still being felt. The town I grew up in was still paying off debts incurred in sewer and street expansions that were never used. I lived in a neighborhood with old decaying brick streets most of which never had houses built on them. It must have appeared lovely (or potentially lovely) when first built... I had a great uncle who was a developer and went bankrupt in the bust. Got to hear lots of stories from him when I was growing up.
 
At some point, perhaps in a couple of years, this housing "bubble" will certainly burst. When this pandemic eases, and supply begins to catch up with demand, there will be thousands of people who are paying ridiculous prices for houses today, that will be left with huge mortgage payments on a house that is worth a fraction of what they paid.
 
I would love to get out of this house and into something even just a tiny bit smaller. My main concern is to get somewhere within walking distance of stores, bank, etc. (The only thing within walking distance--and it's a *long* walking distance--of us now is a tiny gas station convenience store.) And I'd love to do it soon before the bubble bursts and since I don't drive much anymore (I feel kind of stranded). But Huzz abso refuses to move; says he's gonna have to be carried out of here feet-first, sigh.

Speaking of mobile homes, Lee, a mobile home up for sale here in a rundown (I mean there is literal garbage lying there in a lot of the spaces) park that's within walking distance of nothing is listed for $250,000! They probably won't get that much for it, but I bet they get more than what it cost new.
 
When we moved 7 years ago from PA to AZ, we paid $240,000 for a 2200 SF home on 1/2 acre, 4 bathrooms, pool, etc. Today, it would sell for $450,000. Hind-sight is always 20-20, right, because we did sell it 4 years ago and made a little money and bought a smaller house with less upkeep for $156,000. We're in the process of relocating back to PA (probably in the Spring) and our house has doubled in value in 4 years. We hope that holds. A lot of people come here from CA and pay way too much for houses and that drives up prices and inventory. The builders can't build homes fast enough here. That's good for the seller but when the bubble bursts like in '08, the houses aren't going to be worth what they paid for them. We saw that when we came here. People had paid way too much but then couldn't get rid of them and many had to sell them at a loss.
 
Do You Think The Housing Bubble Will Burst Soon?

Doesn't really matter to me, not moving anytime ever. I'll be glad when prices go back down so I can petition the county tax assessor to lower my property taxes back down. Also, my homeowners insurance had taken a 50 % increase just this past year...will have to fight the insurance company to back the rates down again.
 
Building houses is probably the number 1 industry here in Canada. I was to the city last week and the new Canadians were everywhere. The only English I heard in 5 hours was at the check out counter. Makes an "old timer" like me wonder about the future? By the way, with the rising price of housing there are going to be more homeless everywhere. There is going to be a price to be paid for all those silly bidding wars for houses and even bidding wars for apartments. Too bad that the real estate agents got so greedy. Too bad for young people going over their financial heads for big MacMasion types of houses. Too bad for the average person looking for affordable housing.
 
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Not sure about the USA but here in Canada some areas are experiencing record levels of rising real estate.

I consider myself fortunate that I bought when I did a little under two years ago and could sell today and make a substantial profit.

Cash out and go into a nice apartment? Or move to a different area where real estate is still affordable. Would like to wait a little bit, just not quite ready but worry about a crash.

Your thoughts.
I am in the USA. I owed our house for 1 year 4 months. With the rising prices and a sure certainty of a crash, IMO, I sold. I got a nice check and paid off all my bills and am buying a new car. I can’t advise you what do to, but I was worried about ending up, upside down on the house.
 
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I think it's hard to tell when the housing bubble will burst, especially with the affects rising COVID cases are creating. The USA has definitely seen an increase in housing prices. Someone posted in another thread how not only are prices higher, people are paying more than the asking prices. If you sold would you be considering a condo or senior housing? Have you started researching where prices might be more affordable?
I got more than the asking price and a cash offer as well. Housing Prices are insane in Utah right now.
 
It’s the same in Sydney, interest rates are so low, people have gone mad overextending themselves and it’s not much good selling at a profit today when you have to buy another property tomorrow.
Yes, but we have rented an apartment and decided not to buy anytime soon. Maybe after the bubble bursts and properties are much lower. About 7 years ago we tried to sell a house for 80,000 and no buyers. Today that house would sell for 350,000. Go figure.
 
I am in the USA. I owed our house for 1 year 4 months. With the rising prices and a sure certainty of a crash, IMO, I sold. I got a nice check and paid off all my bills and am buying a new car. I can’t advise you what do to, but I was worried about ending up, upside down on the house.
Nice but where are you going to live or did you own a rental?
 
Our housing market is red hot too. There is absolutely nothing to rent and because this is a tourist area, there aren’t even hotel rooms to rent. Less than 1% vacancy and people are offering an extra payment to the landlords if they’re the ones accepted.
 
Our housing market is red hot too. There is absolutely nothing to rent and because this is a tourist area, there aren’t even hotel rooms to rent. Less than 1% vacancy and people are offering an extra payment to the landlords if they’re the ones accepted.
We were very lucky with the rental. All the decent apartments were rented, but I was checking every day and we made the decision to pay double housing costs if one came up because I knew our house could be sold. We were limited in choices because he insisted on having Comcast.

Someone had reserved an apartment but changed their mind. We put a deposit down that day. Luckily the times worked out and we only paid 1/2 month double rent. We had lived in these apartments twice before so we had no problems. They didn’t even require us to show proof of income.
 
I have fallen in love with this place on paper :love: Something to do with the little brook out back.

To buy this place is less than half of what I would get for the one I have now. Pay off small mortgage, commission, etc and still leave me enough to ensure that I have adequate funds for cat food.

https://www.realtor.ca/real-estate/23380780/7-kingfisher-road-saint-john
 
I have fallen in love with this place on paper :love: Something to do with the little brook out back.

To buy this place is less than half of what I would get for the one I have now. Pay off small mortgage, commission, etc and still leave me enough to ensure that I have adequate funds for cat food.

https://www.realtor.ca/real-estate/23380780/7-kingfisher-road-saint-john
I LOVE it. You would have to really investigate that the brook does not overflow it’s bank, and make sure to take out flood insurance cause you never know. But I would buy it. Those stairs on the back patio could be changed to a ramp.
 
The Florida real estate bubble of the 1920s is a good lesson (https://en.wikipedia.org/wiki/Florida_land_boom_of_the_1920s ).

It was probably the worst bubble in US history. Prices in the 1920s rose to levels that did not recover for many years. I understand some of the land still has not recovered to what it sold for almost 100 years ago. Probably swamp originally sold as "waterfront".

I grew up in Florida in the 50s and 60s, and the impacts were still being felt. The town I grew up in was still paying off debts incurred in sewer and street expansions that were never used. I lived in a neighborhood with old decaying brick streets most of which never had houses built on them. It must have appeared lovely (or potentially lovely) when first built... I had a great uncle who was a developer and went bankrupt in the bust. Got to hear lots of stories from him when I was growing up.
Where in Florida was that Alligatorob?
 


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