re: Will the real estate bubble ever burst?

It’s about to with the costs of building materials.

Most folks are encouraged to only put 3% down too.

Yep. This is all fueled by low interest rates. The Dems have stated they want inflation at 2% so that will raise rates and when they get to 4% that bubble will pop.

Very informed response. I agree with you on this.

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I’m literally looking for a house right now too. It’s ridiculous.
People are paying over asking everywhere.

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Apologies - I know very little about real estate. But are higher priced homes usually not as affected by bubbles like this?

I notice For Sale signs often and/or look at what's for sale online, and a lot of the homes that are higher end in BR have been on the market for a really long time. But then I keep seeing people say what you have here and wonder why they've sat for sale for so long.

Nothing the fed has done in the last 20 years suggests interest rates will be allowed to rise to a point of popping any asset bubble. The moment rising interest rates cause the economy to sneeze they are lowered. Low interest rates are about the only consistent policy priority from one administration to the next at this point.

This is a textbook and obvious bubble. Supply is down almost 70% in some markets.

Once the pandemic is past there will be a flood of new homes and crashing prices.

When mortgage rates go back to 6-7% it will.

Just built off Hoo shoo too road in St George and it’s 200 a sqft easy.

We just sold some apartments in California for a good chunk. Never listed just pocket listed through a broker. A large transaction like that from talking about it to closed in 45 days.

It's insane.