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Housing market predictions anyone?
As a couple we are at a point where we would be given a mortgage of a small size house in the city or a somewhat larger one in a suburb (this is a very expensive Western European capital and collectively we earn upper middle class salary). But the prices are so crazy that whatever we buy would definitely not be enough to raise a decent size family as long as we stay in range for our jobs.
The obvious plan would be to get a mid sized place now and then sell and upgrade to a larger house in 5-10 years.
I am very paranoid that the current prices are a massive bubble and if we get a loan today we will be left holding a massive bag when the prices crash and we won’t be able to meaningfully upgrade to a larger house. But on the other hand throwing a large fraction of our income down the toilet with the rent feels ridiculous when we can afford not to.
I'm not sure it's possible to make general housing market predictions at all. Even at the height of the 2008 mortgage crisis in the US, the housing market was actually pretty okay in the great majority of the country, the real issue with housing prices only actually happened in 5 specific counties. Someone would have to be familiar with the local market where you are to take a guess at whether your local housing market is actually in a bubble.
Do you have a source for this? I couldn't find anything on Google.
Man, I definitely remember reading about this at the time, but I can't seem to find anything solid on it now easily. I'm pretty sure that the severe real estate price swings were limited to a few counties in IIRC South Florida, Southern California, and around Vegas. Everyone else was mostly okay, at least as far as real estate investments, provided they didn't take out a crazy mortgage for something that they couldn't actually afford. Most of the nationwide and worldwide pain was from the knock-on effects of the banks' investment instruments collapsing.
Although the phenomenon might have been more severe in those places, it happened in Chicago, Washington, DC, the SF Bay Area, and Phoenix. But not in Pittsburgh or Houston
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