Another housing bubble forming

Rent for a 1 bedroom is 2000 a month where I live and its not even listed in the top 10 most expensive places to live in the US. Clearly there is another bubble forming and I'm not alone in thinking this.

Source

Real estate prices increased again in January, with several states reaching new historic highs, leading experts to wonder whether another real estate bubble might be brewing. Nationwide, home prices rose by 5.7 percent in January compared to a year ago, according to data released Tuesday by CoreLogic

To me its very odd that prices are climbing so high while the labor pool is consistently growing driving down the average earning for almost all sectors across the board.

Wages stagnating and decreasing while housing cost going up. Oh jee... we don't learn easy lessons.

a reply to: onequestion

I apologize in advance.

But why on earth are you paying $2000 a month rent? You could get at least a three bedroom house brand-new for that.

a reply to: onequestion

I feel ya. I live in Denver and it is outrageous here. In 2008, I moved into a two bedroom apartment for $750 a month. Those same two bedroom apartments, now 7 years older are $1700 a month and wages have not gone up much at all since then!

I own a business and have never struggled as much as I have in the past year and a half or so. And I have NO debt. No mortgage, no credit cards, car is paid off, etc. No debt and I still am just doggie paddling.

I've been waiting for the bubble to pop though. I kept saying that even if I have to wait 5 years, I refuse to buy a house in this economy. So when it does, I will be ready to swoop in!
Until then, I will be increasingly angry with Denver and our crazy economy.

a reply to: Greathouse

Not everyone has the ability to purchase a home.

a reply to: alishainwonderland

Somebody already paying $2000 a month rent sure can.

a reply to: Greathouse

Not if you have poor credit or the inability to save for a down payment when you're paying out of your ears just to have a roof over your head.
When there are hundreds of other very well qualified buyers with plenty of cash in hand bidding on the same house.
Eventually you can get into something. But its extremely difficult.

a reply to: alishainwonderland

Its crazy isnt it. It seems like their trying to push out the middle class but whos going to provide all of the services and fix all of the houses and build everything>

Houses cost over a million here... whats the down payment on one of those>

I believe there's a goal to slowly eliminate home ownership. There will continue to be bubbles and they will continue to pop until most people are renting from banks and corporations at continually inflated costs. Just another way to monopolize what should be made available to everyone. It's just another plot for dependency and control.

a reply to: onequestion

The bubble burse in 2008, but it never went away, is not that it's a new one forming but that the last one is been inflated since 2008.

So does this mean its a good time to sell your house? As long as your not asking the moon for it? I suck at realestate

Foreigners now own 45 per cent of Miami and San Diego is becoming expensive due to foreigners also,depending on where you are it may not necessarily a bubble but the end of the common mans home ownership dream.

I agree, its an effort to further consolidate the economy into fewer hands.

Ma reply to: alishainwonderland

I think the biggest problem would be down payment. But then in order to make an investment for my future I would be willing to not renew my lease and slum it for a year in order to acquire a down payment.

Besides many builders are desperate to get work still, i've seen people with two bankruptcies easily get approved.

a reply to: onequestion

EXACTLY!!! It drives me insane. Here, they are buying out all the "sub par" neighborhoods and turning them into these upscale "up and coming" areas. So where are all the lower-middle and lower class people living? They are taking up the cheap and government housing while the middle class gets hit the hardest in every aspect at the same time.
I drive from one end of the city to the other everyday and I literally get angry with all the construction. I have not seen one apartment complex or giant loft go up that isn't advertised as "luxury" living starting at $1800 a month.
I know I'm just ranting now. But it is really starting to drive me crazy. I use to love Denver and I was proud to be a native. Now everyone just moves here to smoke, clog our highways, take our affordable housing, and ride their freaking mountain bikes on the roads in the way of everything!

Historically, housing prices have followed a trend of 2x the average annual income of citizens across the country.

The banking fraudulent derivatives changed all that and they are keeping prices elevated.

a reply to: Greathouse

There's not many people with the ability to just slum it for a year though. If someone has a family with children, it's not possible to live on the street or in a car to save for a downpayment.

There's a force behind driving the ever increasing credit requirements, cash on hand, and interest costs of home ownership. The end goal is to make it slowly, but steadily, out of the reach of more people as time goes on.

originally posted by: onequestion
a reply to: alishainwonderland

Its crazy isnt it. It seems like their trying to push out the middle class but whos going to provide all of the services and fix all of the houses and build everything>

The cheap labor south of the border apparently.

a reply to: Greathouse

The big contractors who can pay people pennies get all the work. All the subs and small business contractors are still barely surviving or are just now starting to pick back up in the last few months.

originally posted by: onequestion
a reply to: alishainwonderland

Its crazy isnt it. It seems like their trying to push out the middle class...

BINGO!!!

You can't destroy a super-power without taking out the middle class first. The government wants us totally dependent on them: for housing, food, medical, thought, and potty breaks. With bubble after bubble, our economy is boiling away, and with it, the middle class evaporates.

originally posted by: alishainwonderland
a reply to: onequestion

I feel ya. I live in Denver and it is outrageous here. In 2008, I moved into a two bedroom apartment for $750 a month. Those same two bedroom apartments, now 7 years older are $1700 a month and wages have not gone up much at all since then!

Yeah it's crazy in Colorado right now! Aparently in Fort Collins people are paying MORE than the house is listed at just so they can get it. Now if that isn't a bubble I don't know what is.

I don't know why Colorado is so bad now in terms of real estate inflation. Besides the insanity of the Fed's reckless monetary policy, my guess is the Fracking and Marijuana industry has something to do with it i.e. more people moving here for those jobs. Regardless when this bubble pops it's not going to pretty anywhere in the US.