Learning from the past. It’s a popular idea after any big downturn, particularly among first-time home buyers apprehensive about making their first major financial decision. But the problem is that first-time buyers are like generals: they learn everything about the last war, but the next war is completely different.
“When discussing price bubbles, we feel that there are few terms which are more widely used and less understood”, says the professional real estate analyst. Amen to that, brother.
Is Silicon Valley real estate in a bubble?
Beats the heck outta me, or anyone else for that matter, but I’ve just run across an interesting opinion on the subject that I like because it agrees with my own experience.
My ears were burning, and now I know why: I just got a pingback telling me that a link to one of my real estate posts was introduced as evidence in a Ferrari chat room debate on whether Ferrari prices are in bubble territory. This would be incomprehensible unless you understand the powerful effect bubbles, Ferraris and Silicon Valley real estate have on the general imagination. I’m not sure I understand it myself.
Are single-family homes a better investment than condos and townhomes? Are neighborhoods with highly-regarded schools a better investment than neighborhoods without?
One of the favorite real estate questions on the Internet these days is “will higher interest rates lower home prices”. It’s a question that assumes a nice, clean, direct correlation between mortgage rates and the Fed’s fund rate that doesn’t exist even in a simple world, let alone the real world, let alone the real world of the past few years. But to anyone asking this question, I can tell them with a high degree of certainty that the answer is “no”.
Three offers? Twenty-six offers? I’ve run across both recently. Which number is “normal”? Which of these buyers–the ones who’ve made three offers, or the ones who made twenty-six–do I think have the best chance of finally succeeding? And for bonus points, how many offers has it taken home buyers I’ve worked with over the past twelve months?