Real Estate Bubble
We put our house here in Melbourne, FL up for sale on Saturday. Sunday it was in the MLS. Monday we received our first offer. Today we received our second offer, full asking price. I think there is a real estate bubble here. I thought we were asking about 3-4% too much for our house already. We had planned to simply rent the house, and hope that someday we could use it as a winter home and split time between here and Kentucky. But I recently read this in the Economist.
In 1929 John D. Rockefeller decided it was time to sell shares when even a shoe-shine boy offered him a share tip.
Everyone I know has been telling me you can't go wrong with real estate, it never goes down in price, and that my house will double in value over the next 4 years – especially people who know nothing about real estate except that they bought a house and it has gone up a lot. Real estate is a good investment, but it isn't that good. So we decided to sell. I think we are doing so near the top of a bubble, or maybe more like a plateau that is leveling off. I just don't think homes will sell in 3 days when interest rates go significantly higher.