The Roller Coaster of Real Estate in the United States

I often question the sustainability of home prices in the bay area. Rents are through the roof. Families are struggling to make ends meet week over week ... month over month.  Many need to leave because they simply cannot afford to live here. 

Hello Bob,  Excellent prediction and what goes up must come down they say.  The bay area is one area to watch closely

Real estate is an Investments that needs to be evaluated periodically thru its life cycle.  If you do not do this you might be setting yourself up for a flop.

Hi Robert Vegas Bob Swetz Great information for consumers to consider. Often rents may be lower than buying and  maybe be an option for the short term housing, However if a consumer is thinking of living in their home for 25 years they know they'll own it in 25 years and effectively becomes a forced savings plan for many. Yes on the short term home prices can jump up or down quickly.. Not an issue if the home owner doesn't plan to sell. When Buying a home, mortgage payments are often fixed for 5-25 years as opposed to rent.

When I first started in Real Estate People didn't buy home for an investment,(they seldom went up or down in value) they wanted to own their own home instead of paying rent.

Cheers

Bob...many people ave been affected by the recent fall and rise

Hi Robert Vegas Bob Swetz - It is always good to be well grounded and detached when making real estate decisions. 

Up and down....year after year....you just have to ride it out sometimes.

You are right about real estate being a roller coaster!

Robert Vegas Bob Swetz  I assume this means you will be moving back and staying my Famous Vegas Bob

 I know you see this roller coaster with all the traveling you do both home and abroad Robert Vegas Bob Swetz 

Hi Vegas Bob - anyone who bought during the bubble of 2006 knows that.  You really need to check the fundamentals.

Interesting in site. The Bay Area defiantly has become over priced as has Manhattan. 

Good morning VB.  Exactly why you and Lin need to stay in the lower 48 however, like you indicated I would do my research before I pull the trigger.

Vegas Bob, studying the ups and downs of the real estate cycle can be very eye opening. I think in the next 2-3 years we're going to see a drop again. 

Real Estate has always been a longterm investment ! I give potential investor clients the book called "HOLD".

Another good warning of what could happen. I have been in real estate for 30 years and experienced the 7-8 year roller coaster cycles of real estate several times. I agree with you and want buyers to buy what they love and it won't matter if they intend on "holding" it until we go out of the cycle again.

It's always refreshing to see a perspective that doesn't sugar coat the buying experience, depending on your timing and how long you own a property, values will react accordingly  

Hey, Bob, you are just up the highway from me. Guess prices are insane all up and down the coast of California, I know it is here on the Monterey Peninsula. Rentals? Forget about it, hard to find and very high too, probably like Silicon Valley.