I can't wrap my head around people who are firm that there will be no crash, or as realtors love to say that prices "always just keep going up."
I'm going to use my friend as an example. We live in a major US metro area. She bought a new home a few years ago for a little over $600k. I thought she was making a giant mistake. Don't get me wrong, it's a beautiful neighborhood, great pool and amenities, but it's a good hour at LEAST from the downtown hub/jobs.
The house is very nice inside, but looks modest on the outside, not too big, and the neighborhood is very tightly built, not much land at all, houses sitting right next to each other. This screams middle class to me, it's brand new, but in a few years when it's not brand new, it's a solid middle class area/neighborhood.
Now she paid about $600k for this home. If these realtors are correct, her home that at least an hour/hour and a half from the metro area, no land, OK not great schools, will keep increasing, so in a few years the home will be worth $700k, then $800k....I mean, seriously?
They have invested a LOT in the home with upgrades, painting, so they'd have to sell it a lot more today than the $600k to even break even...
Even if 'investors' and 'snatching up these homes left and right' who are the investors renting to, at these prices?
Is the math really mathing? I'm not buying any of this, you can't convince me this is in any way sustainable.
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source https://www.reddit.com/r/RealEstate/comments/1qupytp/a_lot_of_people_are_going_to_be_underwater_soon/
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