Real estate market: There has to be a "ceiling" doesn't there?

[Doc45]

I would never pay for my house what I could sell it for. It's not trashed by any means, 1600 sq ft including an unfinished basement, built in 1965, some updating would be nice and a fresh coat of paint and new carpet in the two areas that have carpet. It's just a nice single family home on 1/2 acre with a big back yard, great neighbors and a really great neighborhood. I hope to still be able to stay here when I retire.

Yes, it's the down payment that people can't come up with in order to purchase their first home. I don't see how my younger son and his soon to be wife will ever be able to buy a home. Everything that goes up must go down. We've been through housing price bursts before and will again.

[fitterjohn]

I would never pay for my house what I could sell it for. It's not trashed by any means, 1600 sq ft including an unfinished basement, built in 1965, some updating would be nice and a fresh coat of paint and new carpet in the two areas that have carpet. It's just a nice single family home on 1/2 acre with a big back yard, great neighbors and a really great neighborhood. I hope to still be able to stay here when I retire.

Yes, it's the down payment that people can't come up with in order to purchase their first home. I don't see how my younger son and his soon to be wife will ever be able to buy a home. Everything that goes up must go down. We've been through housing price bursts before and will again.

I see it the same way. I bought mine in 2008 for 158k. (78 build 1400 sqft on an 8k lot)a few months ago I bought a riding now down the street from me. They had moved to Florida and were asking 490k for it same floor plan just a 2 car garage vs 1 car and about 300sqft more back yard. Sold In Less than a week. I would never pay that for my house