Thanks for the thoughtful comments. I appreciate the feedback.

For what it’s worth, I’m not sure there is such a thing as an objective source of information, without any bias. At least I’m open about my biases, instead of trying to pretend I don’t have any.

It sounds like it’s been a few years since you shopped for a loan. Despite all the news about the subprime collapse, the fact is that just about anyone can still get a loan to purchase a home. As of yet there is no “affordability” problem when it comes to buying a home here or anywhere else – it’s a matter of getting a loan with the right terms.

Sure, the bar has raised a bit, but if you’ve got 650+ credit you can qualify for 100% financing on a mortgage that allows you to pay whatever you can afford for the monthly payment.

The simple truth is that anyone earning $15/hr can buy a place. Homeownership is far from the exclusive club that it was years ago when banks required proof of income, assets and repayment ability.

Congrats. You made the most of a booming market…. In a similar vein, I bought yahoo! at 8 and sold in Jan 2000. I would not have recommended doubling up at that time.

As far as the Bubble blog, its a great source of info. If nothing else, ignore the poster comments and just read the links. When, say, the director of PIMCO comes out and explains how overvalued the market is, it eyeopening – and that perspective is not getting much coverage in the media otherwise…. I think The Tim is evenhanded but some of the other posters can get a little overzealous. There are some wickedly smart people with a little too much time on their hands who have invested a lot of energy into predicting a bubble, or at least a decline, and so the tone becomes a little confrontational at times. Contrary to Jo’s opinion, I think most of the zealous posters have an intellectual/emotional stake in a potential decline as much as a financial one.

Putting the tactical “renter vs. buy” comment aside, Dan is spot on with his overarching observations about your blog’s content and style; while interesting and mildly entertaining, you fail to provide a safe and objective forum for all sides of the story. I too have trouble really appreciating your work for anything more than another entertaining one-sided rant to sit alongside the rest of the bulls and bears out there. It is a shame because I think a slight re-focus in your energy and tact could much better serve the boader need in our community for awareness, education, transparency, etc. Until then you will continue preaching to an overzealous choir.

We for two, are sure glad we are landlords and not renters!

In four years I was able to:
– pay off nearly $50,000 in school loans
– buy two nice used cars and two electric bicycles (with cash)
– pay for my wife to go through a year-long program at the Art Institute (with cash)
– buy myself plenty of digital gadgets and toys including a nice home theater system with a 76″ screen (with cash)
– take nice vacations
– and much more…

I could have easily “afforded” to buy a home. It just didn’t and still doesn’t make any sense to spend that much money on a roof over one’s head when it can be had for so much less by renting.

When I started the blog I was somewhat on the fence about the bubble. However, all the data I’ve analyzed points to the conclusion that we are in the midst of a real estate bubble, even in Seattle. Every time I run the numbers on an argument that home prices are supported by “fundamentals,” I come up empty-handed.

You’re free to disagree about the conclusions, but if you think it’s some sort of pity party and nothing more than “bitter renters” “convincing themselves” then you obviously haven’t actually read the blog.

If you’re looking to buy a place to live in and enjoy (and maybe reap some apprecation in the near future)… well, that’s another matter altogether.

If I could find a great property at a great price right now, I see no reason not to buy it. They say you make money on the buy, and not the sell… if you plan to stay in a property for a couple of years, it might end up as a great buy.

That said, there’s prolly still some money to be made as an investor (shorter term), but I’m going to bet these are harder and harder and harder (3x!) to come by.

I think the above sentiment could be said for people on both sides of the bubble argument, regardless of their ability to afford a property.

Jo, I don’t discount your experience, however… there are lots of people who read the popular news at face value and automatically assume there’s this huge bubble (or not). I have to believe that people’s financial situations make them interpret the written word to filter in those things that they most want to read.

EconE and Tim (even if I don’t agree with them 100%) definitely are not in the “the newspaper said so, so it must be true!” camp.

I’ve seen this with several friends of mine. They scream “bubble bubble” but once they get a new job, or have enough saved up, they go out and buy a place. All of a sudden the bubble talk ceases. Morons.

Similar with EconE and Tim. They’re both guys in their mid 20’s and can’t afford anything, or at least afford what they want. They’ve missed the boat and are bitter about it. What a better way to make yourself feel content about losing that opportunity than to convince yourself all those who’ve made a killing so far will lose that money. It’s kinda sad.

If I would have listened to the bubble babblers I would have never bought my place a year ago. And just last month the same floor plan with no view sold for 35k more than I paid for mine. :)

Your site can be informative, and I’m glad it’s up and running. But, I think you can agree that there is a LOT of noise in there – mostly caused by people who try to ruffle the readership community. One thing I find lacking, however, is a balanced voice. I find it to be a somewhat hostile place to exchange opposing ideas…

I wasn’t implying that you stated that buyers were idiots. I am under the impression however, that you believe that renting in this market is a most favorable solution. As the proprietor of the blog, I can only judge your opinion by what is written on the blog… and what I don’t get is a reasonable set of contrarian views. There tends to be a lot of sarcastic rhetoric, including the often used “Buy now or be priced out forever!”. My thought is that this has more to do with the delivery of, and less to do with the message itself.

Personally, I’m undecided as to what to make of the market, and I enjoy reading the Seattle Bubble site as a contrast to this and other similar sites…

Not as a knock to you, I simply felt like Eleua was a good candidate for delivering a message of reason as a contrast to the Matt Gardner piece.

Also, he’s subtly hilarious. =)

“The Tim” seems to be wrapped up in his own renter vs. idiot buyer mentality.

Dan,

I’m curious what you mean by that. Could you expand on that thought? I’m just trying to provide a useful source of information, analysis, and discussion. I wasn’t aware that I thought buyers were idiots, let alone that I am “wrapped up” in it enough to detrimentally affect the conversation.

Please explain?