Real estate bubble popping (Portland, Oregon City: for sale, rent, condos)

[QuaSaShao]

I own a house in the Portland area and just heard a giant popping sound this past week. Foot traffic way down. Price cuts. Zillow estimate on my property dropping like a rock during what's supposed to be the prime selling season. Something is going on.

[EasyBeezy]

Originally Posted by QuaSaShao

Zillow estimate on my property dropping like a rock during what's supposed to be the prime selling season. Something is going on.

Not sure where you live, but my Zillow estimate went up $8k last month, and so did all my neighbors. I was curious so I checked a bunch of houses in various parts of town and couldn't find one whose estimates are decreasing.

[jjpop]

Originally Posted by EasyBeezy

Not sure where you live, but my Zillow estimate went up $8k last month, and so did all my neighbors. I was curious so I checked a bunch of houses in various parts of town and couldn't find one whose estimates are decreasing.

Likewise. Here in the westside burbs, houses are selling in a weekend.

[blazenjames]

People can't see the change until it hits them over the head. Real estate has been clobbered by higher interest rates. 5.5% mortgage plus massive price increases plus other inflation in cost of living has made homes unaffordable at current levels . Bubble popped. Mark my words.

[jjpop]

Originally Posted by blazenjames

People can't see the change until it hits them over the head. Real estate has been clobbered by higher interest rates. 5.5% mortgage plus massive price increases plus other inflation in cost of living has made homes unaffordable at current levels . Bubble popped. Mark my words.

Data.

[ejisme]

I think we are still in the 'Could be Popped' stage. A lot of factors are going on at once and we'll probably need another six months or so before everything shakes out. There are still people with cash that can buy outright and either flip the property, or use it/them as rental properties. Rentals might be the way to go as mortgage rates keep climbing. Still, until a few years ago a 6% mortgage was considered fairly good. We've just gotten use to ~3% for the past several years, which was record low territory. We'll probably not get a lot of clarity until after the November elections at least.

[ccjarider]

What is definition of "Bubble popping"? If home prices have slower growth or perhaps no growth for a period of 2 yrs, is that a "bubble pop"? If home prices decline by less than say 10% over a 2 yr period is that a "bubble pop"?

These two scenarios are likely but not earth shaking by any means.

Anyone who leveraged themselves to armageddon on premise the home value would continue to increase at plus 10% annually forever is kind of dumb and deserves some pain.

[Hugh Morris]

Originally Posted by blazenjames

People can't see the change until it hits them over the head. Real estate has been clobbered by higher interest rates. 5.5% mortgage plus massive price increases plus other inflation in cost of living has made homes unaffordable at current levels . Bubble popped. Mark my words.

People tend to see what they want to see and can't stomach the thought of their home values decreasing. Hubris.

[S6T1R]

Glad this isn’t a problem for me being a wealthy real estate investor, but sucks for those of you who are renting.

[getatag]

Originally Posted by S6T1R

Glad this isn’t a problem for me being a wealthy real estate investor, but sucks for those of you who are renting.

Oh, don't you know? Everyone on here is "wealthy".