Dr. Housing Bubble 09/28/2014

[Crewleader]

The Southwest housing mania is overheating: California, Arizona, and Nevada
leading the way once again with unaffordable housing markets.

There is a great book called Willpower that examines the ability of people to actually exercise self-control and how these character traits impact life. Those that can delay gratification typically end up doing better in life throughout marriages, work, and their financial decisions. Why this matters for housing especially here in California is most people look at their left and right and are trying to keep up with their neighbors. It is fascinating to see many people trying to cash in on their current equity so they can leverage up to a bigger home because they can. Forget about paying down the mortgage for retirement. Time to press reset and leverage into a bigger home. Since home ownership in California is largely in the domain of older home owners many are simply diving into this property ladder game once again. Retirement figures show that many older Americans are horribly underprepared for retirement. Yet the advice is always to buy as much house as you can get your hands on. Think about the $700,000 starter crap shack here in SoCal. For a 20 percent down payment, a household will need to save up $140,000. Most are into instant gratification and that is why car leases reign supreme in the land of all hat and no cattle. This is the land of Purnia Dog Chow eating baby boomers living in million dollar homes and welcoming back their heavily indebted offspring. The Southwest once again is paving the way to this new recent housing mania. If we look at California, Nevada, and Arizona we find that home values have quickly outpaced underlying economic activity.

Where you least can afford to live

http://www.doctorhousingbubble.com/southwest-housing-heat-mania-california-las-vegas-arizona-real-estate-markets-investors/

[dixiegrrrrl]

1. I watched the 2000 era bubble while in Cal.

People who were not flipping houses were racing to get their real estate licenses.
Then they came knocking on every door in the neighborhood, all the time.."do ya wanna sell?""""
promising great fortunes and plans for those who owned their homes and had too much sense to grab another mortgage.

People would buy gorgeous Craftsman homes in settled neighborhoods, tear them down, and put up a McMansion that covered the entire lot, blocked the sunlight of the smaller homes.
And then stick a million dollar price take on them.
All over Cal. and Arizona and Nevada....even as far up as Seattle...the boom was on.


f**king insanity.

[Crewleader]

2. Florida too.

Hi dixiegrrrl,

Home prices here started to rise in 97' and up to early 2000s' they exploded. My neighbor who was renting told everyone on the street, and I can remember this... "I got to buy before I'm priced out." She did and you can guess, she went into foreclosure. There was investors buying through out the neighborhoods in our town, some real estate people and they too, foreclosed.

Florida does have high foreclosures since the bubble of 2000 and now this next round to be won't be so pretty either.

Like you said, it's insane and so sad for those hurt by it all.

More than a quarter of mortgaged homes in Miami are underwater



http://www.miamiherald.com/news/business/personal-finance/article2242300.html