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> They know that if they have to wait 5-10 years, the market will be much more expensive. The "fear of missing out" seems reminiscent of a market nearing its p
by JMTQp8lwXL 7y ago
> They know that if they have to wait 5-10 years, the market will be much more expensive.
The "fear of missing out" seems reminiscent of a market nearing its peak, or minimally, plateauing. Home prices have more or less always gone up long-term, though it's been very gradual over long periods. 10% year-over-year gains don't continue unabated forever.
- Ancalagon 7y agoI'd say the fear is rational if its nearing only a plateau, wouldn't you? Housing prices are already many multiples higher of the median wage than they were 15-20 years ago I believe (due to wage stagnation).
- souprock 7y agoThat's just in a few places with crazy house prices. Generally, the situation isn't like that. For example, in my location the median house prices are less than 3x the median household income.
- heavyset_go 7y agoThere are plenty of rich foreigners who would be happy to buy US housing.
- ummonk 7y agoIt's interesting, about 2 years ago Bay Area I was looking to hop in to the Bay Area housing market before it grew out of reach, but the housing prices were going up every month (so kept getting outbid because I was bidding based on recent sales), with double digit year over year increases. I finally gave up and concluded that I had already missed out, and accepted not being able to afford housing. Not long after, prices plataeued, and have even cooled off somewhat over the past year, despite tight inventory and falling interest rates. I'm guessing there was a mini bubble due to a FOMO frenzy and now that the frenzy is over, prices are taking a respite from ballooning. For the sake of the region, I hope prices have hit an equilibrium point and will stop outpacing inflation, although I'm going to hedge by buying in now.