I agree.....in my area of Ventura County, California there was a huge run up in prices in 1988-90. People were tripping all over themselves bidding prices up to record levels (records for then anyway). In the next couple of years after that you could not sell your house to save your life. Prices ended up coming down 25-30%. If you had bought in at the peak in 1990 it took almost ten years to break even. Most realtors got out of the business. A more recent example. In my area, say four years ago, the "for sale" signs stayed planted in the ground for at least a few months or more before I noticed them come down and a new family move in. Now I see them stay up for about 2 days before seeing the "sold" placard added to the top of the sign, and shortly after that they come down. Even though prices are about 50% higher now houses move faster. The population in my area is about the same, schools the same, jobs are less. Its a mania....just like auction fever. If you have gone to many auctions often you will see prices get bid up way beyond what things are worth. People just get caught up in it, and real estate has the fever right now.
I live on Miami beach and over all think its pretty great....I mostly see people in their mid 20's not 80's...........over all the area is very dynamic......of course it is a City of dreamers and some scheamers, that is its history since being dredged out of the bay......Very little for sale (houses)....a ton of condos though, a serious hurricane may bring a great markdown in prices.....untill then I'm just gonna enjoy!
where's the love for the Hamptons? Boston? New York City? Toronto? the northeast packs some hot places too! -m.o.
What is the Santa Rosa area like as far as prices. Also the Healdsburg area. How does this area compare to the immediate bay area and San Jose?
I'll take you out and show you around anytime. Just let me know when you want to come out for a visit! http://www.santarosachamber.com/ http://www.sonic.net/~waights/demo_santarosa_2000.html http://www.bestplaces.net/html/cchous.asp?lstat=IL&lcity=1768003&rstat=CA&rcity=0670098
The toronto market is also hot. Housing doesn't look to slow down until interest rates go up and they are even higher here in Canada. My question is, how do you play the rental market??? Trading for a living has been good but I am always weary of periods where I might not make any money. I am planning on offsetting this by becoming a landlord of a small apartment building to make some steady flow. My strategy is this, Rental Vacancies are at an all time low. Landlords are struggling. Therefore they should be looking to sell to stop their bleeding. When is a good time to buy?? any successful real estate players out there? SNTO
I can see the mania coming to a climax here especially in my southern california neighgborhood. People have been camping out just to get in on a hot new builder's offering. some of them turn right around and sell it for a quick 10% profit over what they paid the builder and never even moved in! So what do the people do who are missing out on these new homes? some are bidding up the re-sale market of homes built after 2000 like my neighborhood. This will not last. There are 3 absurd comps right next to me on our street. I intend to get a new appraisal and peg the value of my house right now. Get a new loan at a much higher loan to value and take as much cash out as I can, while I can. Just like in trading. It aint a profit til you take it. Ask the dot commers if they had fun watching their stock options go down in value, quickly. Let the bank take the hit over the next 5-8 years. I'll worry about the higher monthly's later. I am sure there is some budgeting I could do If we really had to. Staying in your house can be a big motivation.
Two reasons why I think Southern CA real estate may eventually catch up with, or even exceed Bay Area price level: 1) better weather -- who doesn't like better weather? 2) better economy -- who doesn't like better economy? The current price action supports this trend. The rise in Southern CA should continue well after Bay Area price starts to fall, as people rotate their money out of Bay Area and buy into Southern CA. Classic sector rotation. The smart money is already flowing this way. Since Bay Area, the "leading sector" is still going strong, we should expect another 2-3 years of exciting times. TraderC