25. Crazy Housing Prices

Homebuyers nationwide are watching housing prices go up, , and up. “How high can they go?” is question on everyone’s lips. “As long as interest stay around 5 percent, there’s no telling,” remarked realtor in Santa Monica, California.
“It’s crazy,” said , who is looking for a house near the . “In 1993, I bought my first place, a -bedroom condominium in Venice, for $70,000. My friends thought that I was overpaying. Five years later, I to move. I sold it for $230,000, which a nice profit. Last year, while visiting friends , I saw in the local paper that the same condo was for sale for $510,000!”
It a seller’s market. Homebuyers feel like they have offer at least 10 percent more than the price. Donna, a new owner of a one-bedroom in Venice Beach, said, “That’s what I did. told the owner that whatever anyone offers you, ’ll give you $20,000 more, under the table, so don’t have to pay your realtor any of . I was tired of looking.”
Tim says he he doesn’t get that desperate. “Whether you decide buy or decide not to buy, you still like you made the wrong decision. If you , you feel like you overpaid. If you don’t , you want to kick yourself for passing up great opportunity.”
Everyone says the bubble has to sometime, but everyone hopes it will burst the after they sell their house. Even government officials no idea what the future will bring. “All can say is that, inevitably, these things go cycles,” said the state director of housing. “What up must come down. But, as we all , housing prices always stay up a little higher they go down. So you can’t lose over long run. Twenty years down the road, your is always worth more than you paid for .”