now it is, yes, because everything is getting re-built in Florida. I mean of course in the overall sector. Certain areas (like my hometown) are still booming with the housing industry; we had 3-4 new devlopments go up within the past year totaling about 90-100 losts, nearly all of which have been sold. By the same token, I wouldn't expect that to continue and don't think much will occur after the final lots are sold and built within the upcoming spring & summer. Other areas I'm sure will spring up, but I agree that overall within the next year or 2, starts and sales will slow down. I'm sure there'll still be some good deals to be found, just not at the rock-bottom prices that exist now.
How's this for a long-term investment: my old house was built/bought in 1978 by my parents for about $86,000...couple additions, upgrades, etc. were made over the years to bring the total probably around $120K tops (new room addition, siding, pool, hedges, etc.) Sold it 9 months ago for $206K...(and they bought a new custom-built home for over $300K)
Someday though I wouldn't mind getting some money and playing it on the market on the side; my aunt made a nice comfortable living doing such (and still does in retirement)
How's this for a long-term investment: my old house was built/bought in 1978 by my parents for about $86,000...couple additions, upgrades, etc. were made over the years to bring the total probably around $120K tops (new room addition, siding, pool, hedges, etc.) Sold it 9 months ago for $206K...(and they bought a new custom-built home for over $300K)
Someday though I wouldn't mind getting some money and playing it on the market on the side; my aunt made a nice comfortable living doing such (and still does in retirement)
I bought my first house recently and paid 280 for it (housing prices in WA are out of control as you may know). I have continued to watch housing prices for comparable homes just to see where the market is headed. While I did see an initial downturn in the market for the first few months I'm now seeing new developments sprout up within 2 miles of me. In particular I'm seeing a builder who is known to build low quality, cookie cutter homes with almost no yards, selling one of his for 299... this house is 4 sq feet bigger than mine, will have no appliances etc. Of note my house 6 years old but would be comparible to these house, except I have a yard, appliances, tile countertops etc. So if this guy is able to sell these homes for 299 he's going to effectively increase my homes value 20K overnight.
The people who owned my house before me paid 205 for it 6 years ago. My parents who live ~ 5 minutes away from me had their house custom built in 91 for ~ 200, they could easily sell it today for 700.
All this time I've been hearing about this housing bubble and even convinced of it myself. IF there was a bubble it would have burst within the last two years as everyone in WA was losing their jobs forcing the housing prices to drop, instead they continued to rise. The demand is still there and as long as people are willing to pay these prices there will be no pop. To give you an idea I was outbid on 3 houses during my hunt. Some of these houses ended up going over the listing price. I also saw houses sold within 24 hours of listing. I saw a home in one neighborhood sell for 240 and a house in the same neighborhood, same floorplan sell the next year for 275, less than 24 hours after the listing went up (I was on my way to look at it when I found out).
Anyways I hope your not holding off buying or telling others not to because of fear of a bubble because its just not there.
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