Informal Poll: Bubble Breaking?

[mochilero]

Just wondering what others think about the "bubble." Prices have stalled in Vegas now, and here in Tucson too. No real drops yet, but if interest rates go up even two percent, there will be any thousands fewer buyers able to buy. By the way, it looks as though fewer buyers will drive up rents here, so this may be the time to invest in rentals. There is a way to play every market. What do you think?

[Chief Tutor]

We are experiencing a move from a sellers to a buyers market. Time on Market has increased and we are seeing the average sale price is falling from about 98% of list price to 94% of list price.

I think as the fed continues to raise rates, this will only create more of a buyers market. I also think that people who maxed out their credit line to get the most house for their money will be selling in 2006 as people have various situations whcih require them to raise cash to take care of unforseen expenses.

This could create good purchase opportunites for those in the right place at the right time.

Just my two cents.

[Thesa]

some of our market is still soaring... in Sunriver we have had homes recently go from $275 a square foot to over $300 a square foot. Yet outside the resort we are seeing a stall, not really a drop but a little slow, sales price has been 98% and is about 97% right now. Central Oregon in general is going through such a growth that we are still a good deal for a lot of folks relocating.

[mochilero]

I successfully predicted the stock market bust, but years too early. Prediction of this sort is probably a losers game if we try to get the timing right, but their are some good reasons that prices can't keep going up at recent rates. In any case, their is a way to play every market, and I think fairly priced rental properties are a safe bet now. As interest rates rise, mor people will be forced to rent instead of buy. We'll see....