Comments on: Real Estate Bubble?

By: Empty Spaces Inc.

Empty Spaces Inc. — Sat, 27 May 2006 04:55:00 +0000

house prices are essentially a function of rent. if the mortgage is a lot higher than the rents, the house is overpriced. if the mortgage is a lot higher than the rents even though you’ve got a 3/1 ARM at 5%, the house is MAJORLY overpriced.

remember how the feds raised the interest rates late in Carter’s term and brought about recession? they essentially brought all buying to a halt. if the same thing happens, home prices will tank in overpriced areas, simply because people won’t be to make the payments.

By: Smarty

Smarty — Fri, 29 Jul 2005 00:41:00 +0000

It’s hard to predict what’s going to the real estate market at this point. There’s good arguments on both sides. If you can afford to take the risk and can hold the property for long term, then you should buy. If not, look elsewhere. It’s a good time to look at outside the city areas and consider investing there.

By: Sue

Sue — Fri, 29 Jul 2005 00:09:00 +0000

I live in NYC as well and I own my apt. I have heard both arguments and I think they are both true. In NYC, coops make up 80% of the apts, if you buy a coop you go through a vigious screen process to make sure you can definitely afford it. So the argument that people are going to default on their mortgages or can’t afford the housing, just isn’t true. However, I have also heard that baby boomers are leaving NYC in droves, and with them all the purchasing power. So who knows…

By: Ashish Hanwadikar

Ashish Hanwadikar — Mon, 11 Jul 2005 21:35:00 +0000

So why aren't rents going up at the same rate as housing prices? You say that people come to NYC looking for a job! Shouldn't this people, especially those who are recent gradudates, be driving up rents rather than housing prices? Ashish

By: Anonymous

Anonymous — Tue, 05 Jul 2005 20:26:00 +0000

How? Try fraud. I believe that when the NYC bubble finally pops those left to pick up the pieces will be unravelling some of the shadiest transactions ever.

By: Todd D.

Todd D. — Mon, 04 Jul 2005 23:44:00 +0000

If those people are buying with ARMs or other funky flavor of mortgage, yes, it’s a bubble.

How can people afford these mega-houses, or the property taxes on them? I don’t get it.