posted by justincredible
Property values are in a bubble in general, imo. That’s going to pop regardless of who gets elected.
I'm not sure about this. It may seem like that after the rebound in 2010/2011, but that's because prices dropped a good bit below fair value in many areas.
To get a truer sense, you'd have to go back to what places were selling for around 2001, inflate at 2.5-3.0% per year, and then see what "fair value" is in 2020.
Looking at what my place sold for in 2008, it's now about 10% higher than that. I haven't done the exercise above, but I'd guess my area is not in a bubble.
ok, looking at the Shiller Price index, you may have a point. It shows a 120% average gain across the 20 biggest US cities since 2000. That's a 4.0% annualized gain, which isn't that bad. But if we use 3.0% historically, we get 22.2% overvalued. By comparison, the index previously peaked back in April 2006 at 206 (over 23% annualized gain), which would have been more than 67% overvalued. We could be in "little bubble" territory, which is more likely to deflate than pop.