Posted on 04/29/2020 5:12:37 AM PDT by MtnClimber
February 2020 seems like an eternity ago. But it was just a matter of weeks ago that the economy was booming, real-estate prices were soaring, and everyone was happy and healthy. Then in a matter of days, it all came crashing down.
(snip)
But the big questions deal with the long-term ramifications. In particular, how will this crisis impact the housing market?
Two Schools of Thought
When it comes to the immediate future of the housing market, there are a couple of different schools of thought.
The first school of thought subscribes to the notion that this economic collapse has been unlike any before it. Prior to the coronavirus reaching American shores, the country was in a very healthy financial place -- in fact, the healthiest it’s been for many years. Unemployment was at record lows, the stock market was soaring to new highs, interest rates were low for borrowers, and the housing market reflected all of this -- inching up and up, month after month.
Then it all toppled.
(snip)
But the longer this shutdown/quarantine lasts, the harder it gets to believe this theory. Because at some point, it doesn’t matter how healthy the economy was prior to the collapse. If the economic engine to this country stays inoperable for too long, it’ll inevitably require more time and effort to start back up.
And this is where the second school of thought comes into play. It says that this is more than just a blip on the radar and that there will be both short-term and long-term consequences -- especially in the housing market.
(Excerpt) Read more at americanthinker.com ...
It is beginning.
This looks a lot like another orchestrated crisis by the left ahead of a presidential election. In 2008 they achieved the primary goal of defeating bush. They failed to completely take over the US financial system. I hope people see the relationship with this shutdown and 2008. The ‘RATs are emboldened and the secondary goal is larger this time, control of every aspect of people’s lives.
The government is printing money like it’s going out of style, and tons of people are newly unemployed, but prices for energy and housing are collapsing. Throw in the price of food, and this will be the best inflation ever.
Massive waves of illegal self-help evictions already going on, ahead of the tidal wave of court evictions. Millions to lose their housing.
I’m leaning toward more of a buyer’s market.
I have heard anecdotes of some lenders now requiring buyers to have one year’s worth of mortgage payments on reserve at closing. If that holds true, I’m guessing a lot of folks won’t be able to buy a home.
I’m in the middle of getting rid of two props in Broward and buying one in the Tampa area. Tampa is still moving along but it’s slow in Broward.
So, the two schools of thought...
1) The Sky is not falling
2) The Sky is falling
Such an enlightening article.
Yep, it is beginning...I told my lovely wife that most have no yet seen evidence of a real economic collapse. Most folks thinks we get over this and the economy zooms as it had. We’re on the verge of a disaster like the planet has never seen. I keep seeing more and more stores about the food-chain getting weak.
Like I have posted, the nation must be completely re-opened NOW to avoid this. Of course, who am I to even be regarded by the intelligent likes of the Democrats and the media. Probably sending someone to kill me now.
“We’re on the verge of a disaster like the planet has never seen. I keep seeing more and more stores about the food-chain getting weak.”
So this is where FR is moving after it couldn’t get the 2 million dead Americans they were sure we were going to get?
The Midland/Odessa Texas area will be flush with people trying to unload houses, vehicles, planes, you name it. The oil collapse has devastated the area. Been there done that. Eventually it will come back, but are you willing to wait it out, possibly for years.
The Chinese that own real estate on the west coast probably do not want the same life that the communist Chinese government would give them.
When you figure that 30 million people have become unemployed in the last 2 months, it is not hard to believe.
What this means though is that many of those will be forced out of the home buying market for at least a year. They will continue to be renters. This increases the need for multi family housing(apts).
On the other hand, I read an article the predicted a rise in single family housing as more people move OUT OF THE CITY. Think how this last 6 weeks is for people living in a 600 sq ft apartment in the NYC area. Many will decide that that living in the suburbs and country is more to their liking.
In addition, many of us(including me/a commodity/lumber trader) have realized that I do not have to sit on the trading floor with 30 other people to do my job. We are all using Log Me In to access our PCs at the office. This is saving some traders considerable money when you add up child care, gasoline and wear & tear on your vehicle. Not to mention your actual commuting time. Lastly, I am actually more efficient working from home. I go into my office, close the door and there are less distractions of the other people around me that waste my time.
Well, that was half assed (to treat it kindly) and I can think of half a dozen factors it didn’t even address.
Yeah well, here is a new thought.
Biological Weapons are bad.
In the mid twentieth century, Communist China repeatedly nationalized all assets of western investors in China. In 2021 or 2022 that is likely to be reciprocated and all debts cancelled.
Chinese investors, meet established precedent.
What is a “self-help eviction”?
And in this environment, maybe they shouldn’t.
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