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Originally Posted by S14kouki805
I'm in the real estate business, I'm actually a lender for a one of the larger mortgage companies in the US. Not trying to act like a bad ass either...
But a lot of the people that I talk to, including my Jewish CPA lol, say 2yrs max for this bubble to burst. Like someone else said, it may not be quite 2008-2009 again but the prices must come down. The fed has been talking increasing rate for some time now and IT WILL HAPPEN. It will likely happen towards December but I wouldn't expect the market to instantly tank. The worst affected areas will likely be Mid-West (as usual) with East and West Coast still maintaining above national average pricing.
Honestly I can't wait for this to happen, like another poster said people just don't make enough to support the recent increase in home values. And I don't know about the rest of the country but here in California the wages do not match the home values at the moment.
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It's not going to happen until the Feds raise the interest rates. As long as they are at or near historic lows the "bubble" won't burst. If people can borrow, homes will sell. Home values won't drop until interest rates rise significantly. There's more to it but that's the short version.