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Heading Towards Another Housing Bubble

Mortgage and Lending with Directors Mortgage 200308132

This market is hot, white hot.  At least in the Portland Metro area.  The housing market right now is so hot that in my local area, the Clackamas County, Portland-Oregon City area, we have made multiple offers and lost them all to offers that have been $30,000 -$40,000 over asking price. Here's an overview about the Portland real estate market

Does this bring back memories of the housing bubble of 2005, 2006 and 2007?  Yea, it does. And I am feeling uneasy about this.  In fact, I may be the only Realtor in the area that is telling buyers NOT to buy and be careful of bidding wars on homes NOT worth their sold price.  Yet, no one is listening.

Yes, I understand that when you need to buy you need to buy.  But, does it feel like people are buying because they seem like they fear something is right around the corner? 

I've been getting this feeling that everyone is waiting for this insane market to stop climbing and I am afraid for my clients I work with.

We have made 5 offers on 5 properties and each one we have made very strong offers and yet, we've lost them all to higher bids.  My worry is, are they going to appraise out?  If so, then where will this stop?

At another crash?  Didn't we hear of predictions from the last time of another scenerio where we could get ourselves into this situation again if we don't learn from our past mistakes?

Well, I for one, will not contribute to the mess that is about to happen.

This simply is not what we signed up for as far as the Code of Ethics of being a responsible Realtor.

Anyone else experiencing this?  And in what market?

Peter Mohylsky, Destin BeachPro
PMI. Destin - Miramar Beach, FL
Call me at 850-517-7098

Good question about what the market is doing in your area.  I don't really see those same things  here in NW Florida.  I am not really sure why you think there is potentially an ethics problem coming. You can share your thoughts with your clients but can't stop performing your duties as a realtor.

Apr 03, 2016 08:02 PM
Sandy Padula & Norm Padula, JD, GRI
HomeSmart Realty West & Florida Realty Investments - , CA
Presence, Persistence & Perseverance

Phuong Ha If the 'stars are aligned' perhaps you may be right. The primary issue here is the demand for housing is stripping the supply due to the availability of low cost mortgage money. If we see other sectors affecting jobs take a nosedive, then you might be right, As, Peter Mohylsky already stated, I do not believe you are liable for any ethics issues, since you are doing nothing wrong is a buyer feels the need to pay the pinnacle of market pricing for a home desired.

Apr 03, 2016 10:24 PM