Last housing bubble before 2008?

[rahby1us]

Hey just a general question for anyone out there who's had more time and experience with real estate than myself. When was the last housing bubble before 2008? It seems like most every chart i look at online displays the great recession bubble with clarity, but i don't see any huge similar spikes in the past. or at least nothing that created such a tremendous buying opportunity for those who had free cash lying around.

I was fresh out of school in 2008 so didn't have much cash, but i think a lot of people in my position who had good jobs out of college like to think, oh man if i would have had even a bit of the $ i have today back when the market was crashing... Although in reality it was probably a pretty scary time to get a mortgage.

Check out this link for what i'm talking about. Unfortunately, the graph does not extend to the current date.

http://marginalrevolution.com/marginalrevolution/2008/02/was-there-a-hou.html

[thek1d]

I am currently re-reading Rich Dad, Poor Dad and something that has stuck out is when he talks about real estate in the Phoenix area.  He repeatedly mentions how great it was to buy in the 90s because homes were appreciating like crazy.  While 2008 created an opportunity that may or may not happen again, they will always be local areas with great growth potential.  Off the top of my head I'm thinking of the recent booms around Austin and Charlotte.

I'm not currently investing in R/E (hope to soon!) but that's my take, and doesn't answer your question at all!

[forummm]

There are a lot of housing bubbles that happen in local areas. I think they've happened pretty frequently over time.

[MaikoTsumi]

As big as 2008?  The Savings and Loan crisis of the late 80's early 90's.

[bacchi]

As big as 2008?  The Savings and Loan crisis of the late 80's early 90's.

Yep. Homeowners were mailing their keys to the bank and leaving town.

http://www.investopedia.com/terms/j/jingle-mail.asp

[misterhorsey]

I am currently re-reading Rich Dad, Poor Dad and something that has stuck out is when he talks about real estate in the Phoenix area.  He repeatedly mentions how great it was to buy in the 90s because homes were appreciating like crazy.  While 2008 created an opportunity that may or may not happen again, they will always be local areas with great growth potential.  Off the top of my head I'm thinking of the recent booms around Austin and Charlotte.

I'm not currently investing in R/E (hope to soon!) but that's my take, and doesn't answer your question at all!

I enjoyed RDPD when I first read it, but there's been some interesting commentary since then.

http://johntreed.com/blogs/john-t-reed-s-real-estate-investment-blog/61651011-john-t-reeds-analysis-of-robert-t-kiyosakis-book-rich-dad-poor-dad-part-1

Perhaps worth taking his observations with a grain of salt.

I think MMM is so refreshing is his lay it all out honesty, compared to other advocates of 'wealth creation'.

[clarkfan1979]

Consistent with previous comments, I think housing booms and busts tend to be local. They happen frequently in many different parts of the country. The housing recession in 2008 was one of the few that was felt at the national level.

[mooreprop]

I was able to get good deals during the 90's, then did not buy anything from 2001-2008 because houses were overvalued so much that nothing in decent neighborhoods would cashflow.  (I sold many of my properties in 2007-2008)  I have been purchasing again from 2011-2016, but it is getting close to the point where I will not be buying anything again.  The trick is to look at cashflow in decent neighborhoods.  If you cannot find that, then it is a bubble in my opinion.  It is hard not to buy when other people are getting big appreciation, but it is also hard to declare bankruptcy when the bubble pops.  I prefer to minimize risk.  I sleep well at night.

(Since I live in the Midwest, it is easy to find cashflowing properties and the courts are landlord-friendly.  I am not sure I would want to buy real estate in areas that do not cashflow well, and have tenant friendly courts.)

[Jim2001]

I bought my first house in tract neighborhood (i.e. homogeneous in size and value) in Los Angeles in 1989 for $212,000.  By 1994 prices dropped and five houses on my block sold for between $120,000 and $140,000.

I wish I had bought all five, because in 2006 at least one house on the block sold for $499,500 - Mine!

Read Robert Campbell's Timing the Real Estate Market http://www.amazon.com/s/ref=nb_sb_noss?url=search-alias%3Daps&field-keywords=robert+campbell+timing+real+estate.

[deborah]

2008 was different, but every boom and bust is different. When interest rates blew through the roof, people had difficulty keeping up payments, and there was a more nation wide/international opportunity than others are talking about. The great depression was a similarly wide opportunity. You get these types of opportunities seldom, but that is good because some people are on the losing side of the opportunity.

[fishnfool]

The dot.Com boom around 2000 to 2003 created a housing bubble,  but I'm fairly certain it was more of a regional housing bubble. On the West Coast housing prices climbed just about everywhere within a 2 hour commute to the Silicon valley.