I’ve been watching the stock market, and in many cases there are signs of overvaluation. Probably not to the point of bubble, but certainly where we could have a minor correlation in the near future.
Just curious if anyone feels their local housing market has also gotten overpriced. There appear to be cities in Texas and California that might fit this description, what about yours?
I don’t think housing is too crazy in the central Ohio area, but cap rates on multi-family aren’t that great. Columbus has always had fairly low cap rates in the good neighborhoods though. I see what’s going on, how expensive it’s getting, in places like NY and San Fran, and I just don’t think it’s a problem here.
Right after I sent my previous reply, I saw the post on Facebook about over-heated markets. I definitely don’t recommend doing what that guy did, buying half way across the country. If your single family home is a airplane flight away, it’s probably too far. He had plenty of options much closer to him.
I completely agree Stan. Going 1,000 miles away to buy a single rental property is just asking for trouble. Says the guy lives in Queens, I’d think further out on Long Island there’d be some opportunities at a more affordable price point.
So, how do you know if you’re market is getting over-priced/over-heated? I get that prices are probably near or past their peak, but what is there to believe that they won’t continue to rise with normal inflation?
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