When you look at normal homes that fetch 600 to 700k, you have to wonder how it can be sustainable. Have we all lost our minds? Is this the top of the bubble, just like the dot com insanity where Yahoo was $300 plus a share, etc? It seems like it to me. I know supply is supposedly less than demand in the DC area, but how many speculators own 11 homes or 11 condos? If the market reverses, would it be rapid?
I have a hard time buying in this market. Not only can we probably not truly afford it, but I think it is due for a big reversal. We are all stuck in a queasy feeling in-between time. We try to judge if we should get in or stay out, how to survive, where to move, what to do. It is not pleasant for those who are just arriving here. I have the feeling that all the government money sloshing around this area is what has inflated the whole bubble. Thus far interest rates and high prices have just served to cool the market, not to kill it. The madness continues and I am in the middle of it.