Real Estate Bubble

[Karried]

Is anyone worried about the aftermath of a bubble bursting in other parts of the nation?

Does anyone think that we are not in a bubble in certain parts of the country?

Does anyone think it will affect home prices in our area?

And lastly, is anyone expecting true gloom and doom to hit all of the country and set us off into a recession?

Thoughts on the subject?

[windowphobe]

There may be a bubble in some coastal areas and other high-demand areas where prices are rising at an unsupportable 25 percent or more a year, but I don't think it's happening here; while local prices are certainly rising, the rise isn't especially dramatic — maybe 11, 12 percent annually — and there doesn't seem to be quite such a huge rush to newfangled mortgages (like those interest-only abominations) that can come back and bite people who bought in higher than they could have otherwise afforded.

Recession? Maybe, but I'm not betting on it; there may be some regional busts elsewhere, but I think we're doing OK, so to speak, for now.

[Pete]

Home devauation is almost always tied to a substantial loss in local jobs, no broader economic factors -- even rising interest rates.


Things have slowed down here (of course, it had to at some point) but things are still pretty darn strong. And the more desirable areas of California all have a very limited amount of land to build on due to the constraints of geographic features.


And frankly, my home could take a pretty good dip and I'd still have a ton of equity... And then things start going up again anyway.



I think you'll see a slow down in appreciation rates but nothing more unless a particularly community is hit hard by sudden jobs losses.

[BDP]

I think our abundance of inventory will keep us out of a bust just as it has kept us out of the bubble. The last report I read said that OKC was around 10% undervalued and that has a lot to do with our ample supply. Frankly, if OK is experiencing a bubble, that's pretty sad.

Like Malibu said, most real estate slow downs across entire cities or states, are characterized by slower appreciation, rather than devaluations. Certain neighborhoods can go to crap though, even while others prosper.

[fromdust]

i agree with everyone else. sure home prices have risen in the okc area; even faster than in tulsa. but a bubble we don't have. when it pops in other parts of the country, i heard, it could drive people to safer markets. ie. us