I'll reiterate what I've seen (I'm active in the real estate market as an owner/landlord). Prices are indeed "bubblish" in certain areas. I have owned a condominium in a very popular NYC neighborhood for 14 years, however, and despite the "bubble", this neighborhood has yet to see significant growth. Even today, after 14 years, I will be lucky to see slightly more than a double in a very nice 2 bedroom, 3rd floor walkup. That's astounding, when you consider that in the town that I live, housing prices have risen about 25-35% in the last 2 years. And that is 45 minutes OUTSIDE of NYC. On a train line, which requires a train change to get into the city.
Imagine that a town like this is booming, yet a neighborhood (safe, clean, young, active one at that) that is only 15 minutes from Greenwich Village (at 1/4 the cost to get in than my neighborhood), has barely budged.
My mother's home, 3 hours from NYC, hasn't moved in price in about 14 years. Her other house, 4 hours from NYC, has declined in the last 14 years, but has seen small increases in the last 3.
Something's amiss, though what is amiss is not clear, by any standard. Were interest rates to fall again by .50, I could afford to take the payment savings and purchase another home or rental property. Quite astounding. |
