Will there be another bubble burst?

[Emily Shirk]

My husband and I are looking for our first home to buy. I was recently talking to my mother and she warned me that her best friend (who is a real estate agent in Lodi Ca) was telling her that she thinks there will be another burst in the housing market as soon as 2018. I kind of shrugged it off because my mother can be a bit of a worrier and she had no facts for me but I was just reading this article in fortune and it mention a similar warning. My husband and I are looking to buy in the Bay Area and a burst is the last thing we need when it feels like we are already having to sell our first born just to get a crappy 1920's bungalow.... What are your thoughts PB? Keep on renting or take the plunge? Here's the article: http://fortune.com/2016/01/11/real-estate-bubble/?xid=simplereach_HighEngagement&sr_source=lift_facebook

[Jay Hinrichs]

@Emily Shirk  if your buying a home to live in for a long time  .. then bubbles don't matter as they never last... the only time a bubble burst hurts you is if you need to sell during the burst phase. 

It reminds me of a ski lift ride I took up at Whistler in the mid 80s nice Canadian couple were going to wait until the Chineese quite buying and causing prices to rise in Vancouver... I told them I would not wait. as they will never come back down. and they never did.

even int he bubble burst.. prime bay area properties only dropped maybe 10% to 20%  so just don't sell then.. the only one's that get hurt in a bubble burst are those as stated that for some reason like to buy at the top and sell at the bottom

Ride it through and the property makes new highs thats what prime peninsula market has done since the late 70's.

As for speculation type investing thats different but for owner occ.. not much of a concern at least in my mind.

I wish I still had the 4 homes i owned in Palo Alto and Milpitas and Napa  LOL.