Seems like house prices are going out of control...how long can this go on and are the prices things are selling for now truly reflective of value.?

Asked by WorldTraveler, San Francisco, CA Thu Apr 11, 2013

How long can things keep going up like they have been the past 6 months? I'm in contract on something now and it's scary!

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6
John Arendsen, Agent, Leucadia, CA
Thu Apr 11, 2013
LOL! Ron, you crack me up. "The advantage of Real Estate is that over the long term, it goes up." That's exactly what my stock broker's been telling me for the past 25 years and he's been right in the long run and I'm still long on AAPL!!

Elena, I would say that 2-5 more years of upward mobility is as good a guess as any. None of us have a cyrstal ball and when someone asks questions like this we all want to throw in our 3 cents worth (adjusted for inflation).

My 3 cents is that we're in the biggest false economy of our history and it's a world wide epodemic. The bottom will come falling down big time at some point but we can't sit around biting our nails waiting for it to happen.

I say press it to the wall and keep moving the ball down the field. That's what Donald Trump's been doing for the past 40 years or so and quite successfully I might add.
1 vote
WorldTraveler, Both Buyer And Seller, San Francisco, CA
Fri Apr 12, 2013
I'm an active investor. I specialize in corporate and vacation rentals.
0 votes
David Tapper, Agent, Burlingame, CA
Fri Apr 12, 2013
No one can predict how long prices will continue to go up, it's just in an upwards cycle right now.

People purchase real estate for different reasons, why are you?

Best,

Tap
http://www.DavidTapper.com
0 votes
Elena Talis, Broker, Palo Alto, CA
Thu Apr 11, 2013
The price paid is really the value of the property and it reflects the state of the market as well as buyer's and seller's understanding of the value of the property on the day when the deal was made. I would not expect the rate of growth to remain the same as last year but I do expect the price continue tog row for the next 2 to 5 years.
Web Reference:  http://talisrealestate.com
0 votes
WorldTraveler, Both Buyer And Seller, San Francisco, CA
Thu Apr 11, 2013
Well I don't understand what that means -- they are making more of it all the time. The city just gave approval to 15 new sky scrapers downtown I heard. Also there are new builds cropping up all the time. We still have land available. What's your best guess on prices for the next year, taking into account low inventory.
0 votes
Ron Thomas, Agent, Fresno, CA
Thu Apr 11, 2013
Well, the recession lasted, how long, 3-4 years; and some say we are still in it.
The Economy is a roller coaster ride; has been for two hundered years. It goes Up, and it goes down.
The advantage of Real Estate is that over the long term, it goes up. There has not been a seven year term when R.E. was down.
And, yes, no one CONTROLS the prices of Real Estate.
Remember, they aren't making any more of it!
0 votes
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