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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: Mannie who wrote (113849)	10/18/2015 1:10:32 PM
From: Slumdog	Read Replies (1) \| Respond to of 217734

No bubble here either...... realtylink.org realtylink.org

To: Mannie who wrote (113849)	10/18/2015 3:03:14 PM
From: Elroy Jetson	Read Replies (3) \| Respond to of 217734

Creating a lot of new jobs in one area obviously increases the price of real estate in that area. But this is not price bubble. In a real estate price bubble, the price of real estate rises quickly while the equivalent rental income remains flat or lags far behind. Let's say I can rent a $600k home for $3,000 a month. If after a few years the $600k home now sells for $1.6 million but I can rent it for $3,600 a month, or even worse $2,600 a month, that is the hallmark of a price bubble. If renting the home now costs something like $6,500 a month, the area has experienced a genuine increase in demand. A real estate price bubble is an irrational demand to own real estate which is not consistent with the desire to live there.