Quote:
Originally Posted by Mormon Red Death
the biggest problem is that people were buying too expensive of a house for their income. the average square foot of house in the 70s was around 1100 square feet. Its now 1700 square feet. Have families gotten bigger?
Another problem is that housing prices on the coasts are so high no young people can afford to live there. When my 1300 square foot house in Michigan would be worth close to 6 times its value in California there is something wrong
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Amen to that. Cougjunkie probably knows the local market better than I do, but Utah Valley is loaded with new McMansions constructed in the last 2-3 years. It seems like most of them are in the 5-8000 sq ft range. Construction has just gone crazy. New subdivisions going in everywhere. There is one down the street from us. Lots are $350K for 1/4 acre. Huge homes are going up and all ten lots have been purchased by investors hoping to build a huge home, sell it, and make a profit. If the market tanks, I am sure lots of folks are going to go belly up.
I have a good friend who is a realtor. Last summer he told me that he expected the bubble to burst in about a year. He said that there should be lots of big homes for sale dirt cheap.