Home prices across the country are rising, but most of the country still looks cheap historically. California, however, has several cities looking very expensive at the moment, and California housing trends can often be a bellwether for what's to come across the rest of the country. Do these sky-high prices in cities such as San Francisco and San Diego show that the U.S. is moving toward another housing bubble? In this video, Motley Fool analyst Austin Smith talks with Chris Hill to weigh the evidence for and against, and he tells us what he thinks home prices in California mean for the nation.
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Report this Comment On August 04, 2013, at 1:46 PM, BayAreaBill1 wrote:
CA may well be in a new real estate bubble. Home prices in my SF Peninsula upper middle class neighborhood are exploding. A realtor friend tells me that this buying frenzy is being stoked by large amounts of Asian cash flowing into prime CA real estate. Wealthy Asians are desperate to get their money out of China/Hong Kong and other nations before these nations impose currency controls to prevent capital outflight.
Report this Comment On August 04, 2013, at 3:16 PM, sagehopper wrote:
The whole state is a damn bubble..They are billions in the red. They have a huge leak of resources called "illegal immigrants". They pay out 10 to 13 BILLION every year in the various programs for illegals. They refuse to fix it. They only see taxes as resources, rather than promoting the state in a friendly manner. They are taxing their citizens to death. They have sanctuary cities. They have millions on welfare, and make more money on welfare than they would working..so they don't work. Their school systems suck. They have the Teachers Union dictating their education. The whole damn state is a bubble. And Obama will try to bail them out, in payback for keeping their unemployment figure out of the loop until after the 2012 election was over..Payback.
Report this Comment On August 04, 2013, at 3:30 PM, sirbialik wrote:
I am not against investing in properties; I am not against investing in anything. What I am against is when people purchase the home for cash, turn around and rent it out.
The new owners turn around, rent the property out and within a weeks time, the renters have that property the way it was originally prior the fixing up phase. That's what I don't appreciate.
We, personally, have spent so much time on our property making it "our pride of ownership", not even one week, they just devalued my home $20,000.00! That's what I don't appreciate. So I think, we are the next bubble.
Report this Comment On August 04, 2013, at 4:05 PM, SLTom992 wrote:
Sagehopper is spot on. But the bubble is on the verge of exploding and it won't spread to other states since California will be an example of Obamanomics.
Report this Comment On August 11, 2013, at 3:04 PM, bigkansasfool wrote:
The conclusion in this video is incorrect and stems from the fact these guys in the video are living/working in Alexandria VA and don't know what's going on in the other side of the country.
All of California is in a housing bubble that meets or even exceeds the last one. The real estate market is seeing some very crazy buying and most of it is speculative buying and not from people who will actually live in the houses. I've looked and looked but there isn't an area of California right now where the houses aren't overvalued.
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