Why does it seem as though the real estate market has no concept of supply and demands effect on pricing. What caused the real estate value boom and aren't I screwed since I'm unable to buy the quality of home a person my age and income level (Considering inflation) was able to purchase in 1997?
2007-03-30 10:35:41 · 4 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
You just asked what many of my co workers are asking. With so much daily toiling for the past decade, we have missed the boat on investing in real estate. Everything had all of a sudden gone so high in price.
Others say "What goes up must come down" . Then another will say " They will still keep on going higher so latch on to one already".
The answer is simple. Do not buy where the prices are unaffordable. Count your money, buy a property elsewhere where you will be happy with the living space, perhaps the suburbs, or a smaller city or town. If you are older, count the time lines of the rest of your working years and factor that into your decision. Why buy a dump now because the land it is on might get expensive in another 10 years?
Buy comfort and joy. Heck you deserve the best place to live. After all you work very hard so get that one with the patio and the view, or at least one of them . Enjoy.
2007-03-30 10:55:16 · answer #1 · answered by QuiteNewHere 7 · 1⤊ 0⤋
It is all supply and demand. Why do you think that prices jumped so much They messed with the supply. This bubble was not made on honesty.
You as a buyer go to some Realtor and they give you a list off there MLS or worst yet there listing. Did they tell you that there are other MLS ?? Did they tell you that new homes are not listed on the MLS ? What about the so called exclusive listings? What about all these forecloses? They have shorted the market giving the impression that there was no supply or inventory.
Then the AMATEUR inverters jumped in and even short the market even more.
Check out this web site. www.breakingbubble.com
2007-03-30 12:39:31 · answer #2 · answered by Anonymous · 0⤊ 0⤋
It is based on supply and demand but effected a little differently. The purchase can't be much higher than the appraised value due to banks not giving loans higher than that price. People also have their houses listed much higher than they really are worth (everyone thinks there house is worth more than it really is). Some people need to get out quickly which will drop the price a lot just to sell fast. Overall though it is supply and demand.
2007-03-30 10:48:43 · answer #3 · answered by EWSA_Tricky 2 · 0⤊ 0⤋
Supply/demand always works, but it works in the long run. Right now psychology is the driver. When all is said and done, prices have to be based on local salaries, so just sit tight and save/invest your money waiting for the inevitable.
2007-03-30 10:47:19 · answer #4 · answered by Cardinal Rule 3 · 0⤊ 0⤋