“Back in 2005 - 2006 I kept walking around my neighborhood asking myself how could people afford the prices homes were selling for then. And it kept going higher, and higher. Then it collapsed... unexpectedly.”
The same thing happened in 1978 and 1985. Everybody talks about crashes but no one mention what always happens for a longer period in between the crashes. (Booms).
I have a relative who has lived for 25 years in Seattle and has never bought a house because they are either “too high” or “about to crash”. He’s lost a fortune. I’ve owned, bought and sold through all those crashes and made a fortune.
Rural land is what looks good right now, and I’m searching for just the right piece.
I bought my first house in 1989 for $125K.
I sold that house in 1995 for $127K after putting about $15k into it. SO, I lost money on my first house.
I bought my second house in 1995 for $175K. I sold it in 2010 for $260. I then bought the my current house for $275. It is probably worth $500-550 now.
This is the longest up trend that I have ever seen. I am in NH. We have continued to see people moving here from the NYC area.
The issue is that people continue to move out of the cities all across the country and move to the suburbs and country.
Eventually, prices will stabilize as the difference in cost from city to country/suburbs equalizes.
I would not want to own a condo in some high rise building in almost any of the major cities.