“Be Fearful When Others Are Greedy...” –Warren Buffet – With So Much Greed in Real Estate Should You Be Fearful Again?

[Corey Dutton]

This is a controversial topic. So many people believe that real estate values went down so far in recent years, that all of the feeding frenzy that’s occurring among buyers is just par for the course. But is it?

I see a lot of greed going on around me in the real estate market. Buyers are coming from Canada and overseas, hedge funds are buying properties in bulk, first time home buyers have decided now is the time to buy with interest rates so low, and of course real estate investors are out there trying to find a good deal worth investing in. There’s a lot of competition among all of these buyers and many of them are bidding up the price of real estate over the asking prices.

Maybe back in 2008 and 2009 when everyone was fearful, maybe this was the time to be greedy. Everyone is being greedy right now, is it time to be fearful again, as Warren Buffet says?

[Brian Levredge]

You can still find a good deal in a hot market. It just may be that it takes that much more time to find it. I also don't think comparing what's happening now (in your observation) to what was happening in 08/09 is the most apt. Of course there's going to be a big disparity between the two. Sales volume and sales price are still well down below where they were at the peak. You could compare what was happening in 05/06 to what is happening now and draw a very different conclusion.