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Originally Posted by lewdog
We bought our house 7 years ago and it’s doubled in value. We could currently rent this house for 2.5x our monthly mortgage payment.
None of that adds up to me and it shouldn’t be this high.
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Quote:
Originally Posted by Monticore
It’s going to crash .
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Originally Posted by BigRedChief
this housing boom is different from 2008.
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Yeah, there are major problems in our current housing market, but it's not the same as 2008 at all. The problem right now is a supply/demand issue as others have said rather than an issue of everyone taking out loans that they shouldn't.
The bigger issue we're starting to see in Colorado at least is that the people who work in certain areas aren't able to live there. That's becoming particularly problematic in mountain communities where there are tons of second home owners. You end up with a town where there are tons of empty houses but the workers are having to drive in from an hour away. And all those empty houses aren't spending money, so many businesses find it difficult to pay wages high enough to attract people from an hour away.
Tough to say how it'll all play out, but it doesn't seem sustainable.