If people have to put down cash offers to buy homes in desirable parts of USA, is that a sign of housing bubble?

Ca$h oFFeR__|||___ wrote:

If people have to put down cash offers to buy homes in desirable parts of USA, is that a sign of housing bubble? If so, when will it end? Or will housing prices only go higher once Millennials pay off their college debt 10-15 years from now and finally enter the housing market?

It's a sign people in rich neighborhoods are rich. This is really only a NYC and Bay Area phenomenon. Ton of money, ton of demand and no new supply. Not a bubble.

....,..... wrote:

Ca$h oFFeR__|||___ wrote:

If people have to put down cash offers to buy homes in desirable parts of USA, is that a sign of housing bubble? If so, when will it end? Or will housing prices only go higher once Millennials pay off their college debt 10-15 years from now and finally enter the housing market?

It's a sign people in rich neighborhoods are rich. This is really only a NYC and Bay Area phenomenon. Ton of money, ton of demand and no new supply. Not a bubble.

I'm seeing it in Denver, CO and Boulder, CO.

"While home prices nationally have not yet returned to their peak of the last housing boom, some local markets have surpassed it. Now, some claim the housing market is in a bubble far worse than the devastating one in 2006. The argument: Housing is far less affordable today than it was back then, and the home price gains are driven not by healthy, end-user demand but by a lack of construction, artificially low interest rates, and institutional and foreign all-cash buyers."

I'm seeing in here in Portland OR too. Another thing that bothers me is stories of hedge funds and super wealthy buying up homes strictly to hold as an investment. Potentially your "neighbor" could just be some George Soros type who is buying property as a long term investment hedge against global warming damage in other parts of the world. I don't think it is healthy. BUT, in and of itself it is not a sign of a housing bubble.

Ca$h oFFeR__|||___ wrote:

....,..... wrote:

It's a sign people in rich neighborhoods are rich. This is really only a NYC and Bay Area phenomenon. Ton of money, ton of demand and no new supply. Not a bubble.

I'm seeing it in Denver, CO and Boulder, CO.

Summary of single family entry level housing market

https://youtu.be/O5_qy7d8CGU

ryan foreman wrote:

I'm seeing in here in Portland OR too.

Another thing that bothers me is stories of hedge funds and super wealthy buying up homes strictly to hold as an investment. Potentially your "neighbor" could just be some George Soros type who is buying property as a long term investment hedge against global warming damage in other parts of the world.

I don't think it is healthy. BUT, in and of itself it is not a sign of a housing bubble.

Ca$h oFFeR__|||___ wrote:

I'm seeing it in Denver, CO and Boulder, CO.

The Chinese are doing that in Vancouver and SF and rest of Cali.

Are they also doing it in Portland, Seattle, & Denver? If it's because supply will always be tight, then that's great, right?

A lot of people cite that wages have remained stagnant so everything has to crash at some point as structures aren't in line with incomes, but if investors are artificially propping up the prices, when if ever is that going to end and see a market correction?