It’s 2016 now and real estate is hot. Oh so hot! From Pasadena to Pleasanton to Palo Alto to Palm Beach Gardens to Panama City the market is boiling over as far as home prices are concerned but the other factors are not the usual expected parallels. It’s almost the summer of an election year and what better time to buy real estate? Well perhaps a better time to buy real estate would be 2017 if prices go down with a postelection market malaise. That would mean this is definitely a period where investors are about to run over a cliff. Anyone that has been watching the market for the last 10 years has seen this cycle before. If you have been watching the market for 20 or 30 years then you have seen the cycle several times over. The exuberance of the marketers almost a real especially cents it is in exuberance of the market itself but not necessarily the buyers And sellers in that market. They are all too well aware of the runaway train that most of them can’t catch.
If you listen to a market update you’ll hear odd data with medium missing prices climbing ever higher compared to last year. The percentages of increase our after 21% and some California markets year-over-year. How long can this be sustained? As long as there are people willing to pay those kind of prices for homes which have run into multimillion dollar median prices in Northern California markets. No one is looking very far into the future and they don’t seem inclined to even entertain the possibility or the probability that market conditions will change very soon if pass cycles are any indicator.