When discussing a real estate bubble with “non-believers,” one subject that often comes up is emotions. Some real estate enthusiasts go so far as to claim that everyone who believes in a bubble is a bitter, scared, renter. On the other end of the spectrum, Marlow Harris of the P-I’s Seattle Real Estate Professionals blog is a good example of a real estate enthusiast that is less condescending. Regarding the conversations on Seattle Bubble, she observed:
People are scared. Outraged. And angry. Upset that they can’t buy a house or upset that they did.
Certainly there is some truth in her observations, but I’m not sure that she has it entirely right. Are some of us outraged, angry, or upset? Sure. Although (thankfully) the back and forth here is nothing compared to the Craigslist housing forums, there’s definitely a degree of anger at just how ridiculous the whole situation has gotten. But scared? Fear is something that I just don’t see in the comments here. Most of you don’t own a house, so what is there to be afraid of?
Although there are many emotions wrapped up in the bubble debate, I personally believe that most bubble believers base their conclusions on logic and a reasonable assessment of the situation. Of course, for people that are totally wrapped up in real estate, that’s a difficult thing to comprehend. Difficult, but perhaps not totally impossible, as demonstrated by another comment from Ms. Harris:
Being the consummate real estate professional that I am (tee-hee!), my first reaction is to run to these folks and offer assistance to help them become proud homeowners. Imagine my surprise to find that many of the people who comment on Seattle Bubble do NOT want to own a home! Or, at least, they don’t want to own a home if it means living in a crappy house with a huge mortgage.
In our real estate office, it’s constant rah-rah for real estate and we spend hours helping buyers figure out how to get the home of their dreams. So it’s just interesting to read another opinion when it comes to owning a home.
If you decide to comment on Marlow’s post, please be nice. Unlike some of those in real estate, she is clearly willing do have an open dialog about the issue.
So what’s your bubble belief driven by? Are you angry and upset, and just looking for “facts” to fit your perception, or is it the facts that are making you angry? What other emotions do you feel about the bubble?
(Marlow Harris, Seattle Real Estate Professionals, 05.18.2006)