Aug 21 2013

How You Can Tell A New Real Estate Bubble Is Inflating

Your one fuckewitte friend from high school is going to become a real estate agent, because your other fuckewitte friend is already a real estate agent and is “raking in the cheddar”.


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  1. 1

    Regardless of any potential housing bubbles, the rate most agents get (2% or 2.5% if I remember correctly) means that you can make a pretty good living selling about 1 house a month if you are in a typical middle-class neighborhood ($300k to $500k houses).

    You can’t be completely lazy, but you don’t have to work all that hard to make pretty good money (approaching or possibly exceeding $100k a year). There are very, very few jobs (besides being a CEO) that has that good of a payoff with minimum education.

  2. 2
    Kate from Iowa

    Ugh. You get a client who explains that even though she told the loan officer she had no money to put down and “a handfull” of credit troubles that getting her in a nice house in a good neighborhood would be “no problem at all.”

    Seriously, did everyone not pay any attention at all to what happened and was still happening…what, five years ago? Has there been a massive, country-wide brainfart followed by completely shitting out all the common sense that remained?

    (And then, finding out after work that same day that a friend who’s already lost one house to the financial crisis is now buying another one only this time with a second child, a worse job/lower income, a new divorce and accompanying bankruptcy…I mean really? REALLY, AMERICA!?! What the fuck?)

    I thought it was just an isolated incident or two of self-righteous midwest dumbass.

  3. 3
    Raging Bee

    Kate from Iowa: that’s your other sign of a new real-estate bubble inflating.

  4. 4

    How about this?

    I live in Monterey, CA and I am getting cold called by real estate agents wanting to sell my house. I also find flyers and business cards from agents on my door, in my mailbox and on my car, saying that it’s a good time to sell, and that there aren’t any houses currently for sale in my zip code, would I like to get out of my house payment or move up in house value?

    I hear that this cold calling thing is happening all over So Cal as well.


  5. 5

    Sparky_ca: I have a standard response to telemarketers: “I’m sorry, you seem to have mistaken me for someone stupid enough to bite on a cold call.” If the telemarketer woke me up, or interrupted a meal, I may add some Navy-surplus language before hanging up.

  6. 6

    Economist Dean Baker, who was one of the few that caught the first bubble, sees some evidence of real estate bubbles re-inflating, though at least for the time being it seems to be a regional phenomenon.

  7. 7

    In 1996, I took out a mortgage to buy my house, for just shy of £30 000. I was taking home less than £10 000 per annum.

    In 2010, I made the final payment on my mortgage. My house was now worth nearer £120 000 — and my take home pay was just bit less than £20 000.

    You do the maths.

  8. 8

    Don’t “the maths” depend on what you would have had to pay in rent and what investment opportunities would have been available with the excess (?; including any tax benefits) you poured into your mortgage, BecomingJulie?

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