How are you handling the hype? This article and vid shows the herd in effect...

[Account Closed]

If you guys haven't seen or read about the growing bubble, this is a great read (and vid reference) on the actual experience in the so cal market (san diego in this vid) - Jim the Realtor is a great watch :)

Just an FYI, you can find some helpful info on CalculatedRisks's blog site. Here's the link to the article about the growing hype

Given the heavily manipulated factors in the market, I'm not sure how safe it is to flip ... in so cal at least. We're dealing with artificially uptrending prices thanks to low inventory, low interest rates, high demand (hedgefund money, typical and growing re investors, and the conventional home buyer). Meanwhile the job market has been declining to flat. That said, (I heard this from a norris group talk recently) if trends continue to where new construction begins to pencil, the economy can turn around. The problem will be that the already inflated market will not have much foundation to stand on. I've been looking at some of the numbers in the area, and if trends continue to the 2005-7 days, I'm not sure how most hh income will be able to support such high pricing.

Are you guys continuing to flip in this uncertain market - well, at least in the LA / SO CAL area? What's the ideal strategy/ies to have in an uptrending (bubble) market? The only position I see as "smart" might be (2 actually): 1. buy/flip early in the trend (but early is relative to what the cycle will be); and 2. be the enabler of purchasing r/e (as an agent/broker, lender, etc. etc).

How are you approaching the current and uptrending market?

[Will Barnard]

Not sure I agree with the dotted projection line showing that great of a decline, and in addition, it is a chart for a National average. As we all know here on Biggerpockets, even though the rest of the country fails to rwealize it, there is NO such thing as a national RE market. All markets are local.

In CA, that projection line would have to go up a bit and then a drop from the upcoming bubble burst that will likely happen.