patrick.net

Yes, it's probably easy to classify most 2nd+ homes as irrational exuberance, but there were plenty of single home purchases also fueled by it as well.

Here is another working definition:
mortgage availability: This is my primary residence (I'm telling the truth)
irrational exuberance: This is my primary residence (I'm lying*)
*For instance, you could be a member of the SF Board of Supervisors, except your primary residence isn't in San Francisco. In addition, you apply for a mortgage for another primary residence in Arizona. You can't make this stuff up.

Okay I just hit the ignore button on one of the guys here. Now the thread will be easy to read.

Troy says

However, the Ramirezes said Rancho Grande real estate agent Maria Avila

Bingo! REA, on mainstreet, were not qualified to make such statements.

Troy says

It was possible to carry a $1.2M loan on $3000/mo or so, no?

LOL! nice quick retirement package for the seller. And certainly many did!

$ 1.2M for some of these houses, no not worth it. To put that much risk on
oneself with actual worth around $300-350K home is pretty much asking for trouble.

Nomograph says

bubblesitter says

Okay I just hit the ignore button on one of the guys here. Now the thread will be easy to read.

Most people use the ignore button for trolls, not to avoid dissenting opinion during legitimate discussion.

Don't worry. It is not you :) and yes he has proven himself to be a troll several times and was called so by many bloggers here.

newhomebuyer7 says

Man this whole situation is freaking me out. I’ve saved up 100k and paid off all my debt. I’m currently crammed in a one bed room apartment and really want to purchase a house for a higher standard of living. I’m in the DC area where many of the homes I’m looking at sold for $150k in 2001, sold for 500k in 2006, and are now selling for 300k.

Personally I'm waiting for those 2001-ish prices before I move. During the bubble I saw condos in downtown Laurel being bought for 75K and relisted for 150K. This is someplace in the worst part of Laurel.

zzyzzx says

newhomebuyer7 says

Man this whole situation is freaking me out. I’ve saved up 100k and paid off all my debt. I’m currently crammed in a one bed room apartment and really want to purchase a house for a higher standard of living. I’m in the DC area where many of the homes I’m looking at sold for $150k in 2001, sold for 500k in 2006, and are now selling for 300k.

Personally I’m waiting for those 2001-ish prices before I move. During the bubble I saw condos in downtown Laurel being bought for 75K and relisted for 150K. This is someplace in the worst part of Laurel.

Note that newhomebuyer7's comment is dated back to last Jul 2010. I think he bought a nice SFH at 290K short after that time. I forgot about that till now, and you remind me of it.

By the year 2010, housing market in the area I think he bought his house went down 40~50% from the peak. One of the hitten hard area arround DC. I thought that's almost as low as it can get and I guess he thought it that way too. The thing is that, it still is going down in the area. 15~20% from 2101. It may or may not put him into underwater situation, depending on the downpayment though, I guess he can manage it.

We got several totally different markets arround DC area. I am keeping my eyes on springfield, burke and some other parts of fairfax county, where no signifcant hit happened. I am seeing more homes getting into the market in these days, but I am not sure what causes it. It could be usual spring thing. But I have this suspision about some people (flippers) are getting desperated, because quite lots of homes I went to openhouse in last few weeks were bought in either 2009 or 2010.