3 ms·

Is it a bubble? Where is the irrational exuberance? Lots of people need homes, there aren't enough, prices go up. And investors hoarding equity by forcing peopl

Is it a bubble? Where is the irrational exuberance? Lots of people need homes, there aren't enough, prices go up. And investors hoarding equity by forcing people to rent have a captive audience. Both of those aren't really tulip/crypto hysteria. It's just a shitty situation. I would love to see investors get burned too, but I don't think there's anything to pop. We're just a decade behind Canada.

llanowarelves 4y ago
People are FOMO'ing into buying sight-unseen houses the same day they get listed because they think it will continue doing 20-30% year-over-year with no significant pullback in the near future. Or same FOMO on the interest (mortgage) rate. That's not healthy
x86_64Ubuntu 4y ago
I see your point, but I look at the houses going up all around me and their prices, and I wonder where folks are getting this money from. I know what I do for a living and how well it pays, but people who make less than half of my salary are buying homes that are twice as expensive. Also, talking to realtors they mention that homes are sometimes sold before they hit sites like Zillow and such. Sight-unseen, waived inspections, $20K over asking. This can't be sustainable.
- throwaheyy 4y ago
  It’s more than just salary. Take an elder millennial who has been working in bigtechco for 10 years or so. The RSUs they collected in their early years could be worth >10x today. Same with crypto over an even shorter term.
bogomipz 4y ago
I think the irrational exuberance is over. I think the period of exuberance ended when the 30 year fixed mortgages went above 5%. Of course people need homes but I think the interest rates combined with the energy costs to heat and/or cool that home along with the price of gas to get to and from that home have all started to make the purchase less viable for many. There's actually a bit of a rush right now for sellers to sell before rates go up further. See: https://archive.ph/9uU3j https://archive.ph/9uU3j The other side is that anyone who sells right now will need to buy at the top of the market, possibly incur the 5%+ interests rates(if they didn't make out extremely well) and afford the increase in taxes on their new home's possibly insane property valuation. This is of course in addition to all the other current inflationary concerns of maintaining a house right now.

llanowarelves 4y ago

People are FOMO'ing into buying sight-unseen houses the same day they get listed because they think it will continue doing 20-30% year-over-year with no significant pullback in the near future. Or same FOMO on the interest (mortgage) rate. That's not healthy

x86_64Ubuntu 4y ago

I see your point, but I look at the houses going up all around me and their prices, and I wonder where folks are getting this money from. I know what I do for a living and how well it pays, but people who make less than half of my salary are buying homes that are twice as expensive. Also, talking to realtors they mention that homes are sometimes sold before they hit sites like Zillow and such. Sight-unseen, waived inspections, $20K over asking. This can't be sustainable.

throwaheyy 4y ago
It’s more than just salary. Take an elder millennial who has been working in bigtechco for 10 years or so. The RSUs they collected in their early years could be worth >10x today. Same with crypto over an even shorter term.

bogomipz 4y ago

I think the irrational exuberance is over. I think the period of exuberance ended when the 30 year fixed mortgages went above 5%. Of course people need homes but I think the interest rates combined with the energy costs to heat and/or cool that home along with the price of gas to get to and from that home have all started to make the purchase less viable for many. There's actually a bit of a rush right now for sellers to sell before rates go up further. See: https://archive.ph/9uU3j https://archive.ph/9uU3j The other side is that anyone who sells right now will need to buy at the top of the market, possibly incur the 5%+ interests rates(if they didn't make out extremely well) and afford the increase in taxes on their new home's possibly insane property valuation. This is of course in addition to all the other current inflationary concerns of maintaining a house right now.