[quote=spdrun]I don’t see that much “crowding”, except in places where supply has been artificially restricted. Also, unlike stocks, prices are driven by assessments, which change slowly.
Buy if the numbers make sense — if mortgage payments (i.e. principal + interest) are say 5,5% or 6% of the property value, you can lock a rate for 30 years, and the cash cap rate is 7%+, then by all means… If cash cap rate is 4% and you’re not paying cash, then forget it.[/quote]
Hearing stories from all across the country about multiple bids, over-bidding, etc. It’s not just in California or other “high demand” places. In some cases, we’re talking about very small towns in fly-over states. LOTS of investors crowding into RE.
This is from 2011, and it’s only gotten worse since then from what I’m hearing.
First-time buyers are running into tough opponents in cash buyers. They accounted for almost a third of existing home sales in March and April, the National Association of Realtors says. Before the housing crash, cash buyers accounted for less than 10% of sales, NAR says.”
Way too many “investors” chasing returns. Big red flags waving all around…this is a bubble (IMHO). The only question is what stage we are in. We will probably see this continue to inflate until interest rates get away from the Fed or some other “unexpected” shock comes our way.
