[quote=temeculaguy]I will happily call it a bubble right now. Mark my words as I will link this post in the future… Haircuts are coming
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This has to be true. Even Zillow is not keeping up with the price increases in my area. I am totally astounded by the April and May sales prices.
I’ve been hearing people compare 2021 to the start of the roaring 1920s that also happened right after a pandemic. I’m not buying it. There were different forces at play in the 1920s. First, prices actually dropped by double-digits on things like automobiles. Second, returning WW1 soldiers are what made the 1920s roar. We don’t have a similar situation this time.
In the 2008 downturn, I was only able to position myself to weather the storm, not profit from it significantly. I’m in a different position now. I’m trying to get in a position to pounce when the bottom hits. Could I be wrong, could inflation take off and bail new home buyers out? It could happen, but I tend to think the inflation we are seeing right now is due to disrupted supply chains and will go away in 2022.
[quote=temeculaguy]
I like my house, just signed contracts for solar and tesla powerwalls
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This must mean you bought Tesla solar also as I’ve heard Tesla has announced only Tesla solar buyers can buy powerwalls now.
Two words of caution here:
1) If your roof is 20+ years old, I *strongly* recommend you replace the roof at the same time the solar panels are installed. (if you have a tile roof, replace the underlayment. If you have a shingle roof, replace the shingles).
Why? Because your roof will likely start to leak in the next few years and when you need to re-roof, solar companies charge $150 per panel AND UP to remove them for the roof work and reinstall them. You do the math, it adds up quick!
I recommend the re-roof and solar install at the same time because of the chicken-and-egg thing: If roofers go first then solar, roofers could claim the solar installers voided your roof warranty. And if you do it the other way around (solar then roof) and use fly-by-nighters to remove/reinstall solar panels, then that will void your solar warranty. If you have both things done at the same time, those folks can talk to each other and work out how they each can do their work and not void the other’s warranty.
2) I have been reading reports where Tesla is upping costs by $10K+ on contracts that were already signed but not installed yet. Beware!
[quote=temeculaguy]
But these current valuations are not sustainable.
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I was reading off some recent sales prices in our area to my wife last night and finished by saying “so our house is now worth $x”. Without hesitating she said “for now”. These values have to be temporary. Prices will have to fall back to earth. I’m sorry that folks are going to get hurt…I wish more people would learn from the past. I guess the “buy now or be priced out forever” mantra is very powerful.
