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2023-11: Warosu is now out of extended maintenance.

/biz/ - Business & Finance

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4193821 No.4193821 [Reply] [Original]

Real estate question.

Are home prices overvalued? It's hard to get a starter home in any decent area in a lot of major cities in the US. Are we overvalued? Should I wait to purchase?

>> No.4193869

>>4193821
Housing, bonds, and stocks have all greatly outpaced GDP growth. Housing prices are back to where they were just before the 2008 crash. I would wait until it corrects. It might be a while, but the more overbought these assets get the better deals you'll get buying after the correction.

>> No.4193911

>>4193821
>Are home prices overvalued?

Less so than bonds for example. Although buying a home to live in is usually dumb as fuck. Just get a 2-4 unit complex and live in one unit.

>> No.4193928

I bought a 100k townhouse. No regrets.

Cheap as fuck mortgage payment, it's mine, and I'll rent it out once I get it paid off in 5-7 years. Win win win.

>> No.4194111

>>4193911

Good call. Just need 200k now. Wish me luck.

>> No.4194134
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4194134

>>4193821
No but the housing market is going to be stangant for the next several years until either a correction or upward move again.

There's a lot of people who can afford these houses.

>> No.4194179

>>4194134
>'s a lot of people who can afford these houses.

It's what I am wondering. I don't see wages going up. I see rents going up and debts going up. I don't see how this could sustain itself if there was a credit event for instance.

>> No.4194216

Nice, just bought 100K

>> No.4194255

>>4194179
>I don't see how this could sustain itself if there was a credit event for instance.

You're right that's why I don't recommend buying any housing unless it's paying itself off with rents at least, and historically that rent is relatively safe.

>> No.4194864

Subprime loans reappeared a year ago, and more people are overleveraged now than there were in 2007. The media isn't really talking about that yet.

This coming crash will start in 2019. A lot more people will be going upside down on their mortgages (again). What's happening right now is an exactly the same as what happened right before the last housing crash, and people are falling for it all over again.

You think the FOMO on crypto is bad? The FOMO people get with buying a house when the market is rising is ridiculous. They're willing to sign away their life to a mortgage, and then when the market crashes they still owe the full amount and have to keep paying it.

At least with crypto the initial money you put in is your maximum loss.

>> No.4195260
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4195260

>>4193821
I'm waiting for a space station myself.

>> No.4196213

The crash will clean everyone.