2 ms·
This is the wrong time in the cycle to buy a house in the Bay Area, unless you're filthy rich.
by mmagin 9y ago
This is the wrong time in the cycle to buy a house in the Bay Area, unless you're filthy rich.
- tehlike 9y agoI think part of the game is to not think too much about that. Crisis happened in 2008, but it bounced back pretty fast. Check this: http://www.paragon-re.com/3_Recessions_2_Bubbles_and_a_Baby http://www.paragon-re.com/3_Recessions_2_Bubbles_and_a_Baby To me this long term trend is teling me that the drops are only temporary and contained for about 3-5 years. Sure if you buy at the peak, there is a chance that you might owe money to a bank for something you do not own (negative equity that is), but it will bounce back. unless, you know, detroit thing happens, or that california defaults (because of pension crisis, etc), or it raises taxes too much. i am not a fortune teller, obviously, but bay area has been its own bubble for quite a while now.
- astrodust 9y agoJust because it bounced back doesn't mean it didn't just double down on the existing bubble. If prices vastly outstrip the ability of ordinary people to afford it, you're detached from reality.