Housing Bubble 2: Return of the Ugly

I have family that lives in San Jose and this is a common topic of conversation at family gatherings.

Everyone that bought houses got them years (and decades) ago, before all this insanity. On paper, their property values have gone up, but so have their property taxes. Those who locked in their mortgages at fixed rates at least aren't seeing their monthly payments go up, but those who took out HELOCs to fix something up have watched the payments multiply.

If they sell, they're worried a big chunk will be taken out for capital gains and they will have to move far away or even out of state for what they could afford. Those with college age kids worry that their kids will never be able to live near them (so they can see their grandkids). And those retired on fixed income are watching as property taxes and high local inflation chips away at their savings.

It's a strange quandary. Doesn't seem sustainable.