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The nation is seeing extreme increases in price, maybe that’s a bubble. HCOL areas like the Bay Area, LA, and Seattle I doubt are in a bubble. There has been a
by almost_usual 6y ago
The nation is seeing extreme increases in price, maybe that’s a bubble. HCOL areas like the Bay Area, LA, and Seattle I doubt are in a bubble.
There has been a lot of liquidity injected into the market. A portion of it has gone to tech stocks and people wanting to hedge against inflation. Guess who gets that liquidity when they vest?
Last year buying a home in the Bay Area was something I planned to do in a few years. A year later I own a home.
I’m not the only one, there are tons of all cash offers out there right now.
You need 40-50% liquid of the home you’re making an offer on right now to be competitive. No contingencies, cover appraisal gaps, etc.
I honestly don’t care if it’s a bubble at this point. If my home value drops 50% whatever I have a home where I want to be. I have equity and other investments like I did while renting.
- helen___keller 6y ago> The nation is seeing extreme increases in price, maybe that’s a bubble. HCOL areas like the Bay Area, LA, and Seattle I doubt are in a bubble. I generally agree. The highly paid workers living in these regions continue to be highly paid, and the quantity of housing continues to be constrained. I think a lot of small/medium cities will see corrections if lumber prices go back down. There will be a building boom, new subdivisions will flood the market and drive prices back down on the fundamental costs of producing housing. In larger cities, we're too space constrained (and building high density is illegal) so this feedback loop has been broken and will continue to be broken, thus prices are set by whatever can be afforded with a local wage.