Posted on 09/07/2021 2:04:31 PM PDT by millenial4freedom
Investor Peter Boockvar is sounding the alarm on a housing price bubble brought on by the Federal Reserve’s Covid pandemic policies.
He warns first-time homebuyers are most vulnerable to dramatic losses.
“I feel bad for the people who bought homes over the past year because they’re the ones that paid the very elevated prices,” the chief investment officer at Bleakley Advisory Group told CNBC’s “Trading Nation” on Thursday.
He singles out those who put down 5% amid historically low mortgage rates. If home prices correct by 10%, Boockvar sees a world of pain.
(Excerpt) Read more at cnbc.com ...
I don’t think RE prices are going to go down.
Wow. What a scaremonger. Wipe out all the equity? I hardly think my house is going to lose 260K in equity. This guy must be smoking some serious drugs.
That’s OK as long as the property assessments rise and the government school “teechrs” are taken care of.
the houses 2 blocks from me sold for $6000 NEW in 1964, today they are $500,000
They’ve already corrected down about 3% here in the Denver metro area, since July. As an investor with active listings, it’s no fun for me - but prices are absurd for most the unrenovated crap here. Looking forward to a balanced market.
For alot of us between the coasts.
The value of our house is shelter. Our land is an investment and a revenue producer, but the house is a declining asset in a market that favors modern, new and fresh. A house with a view, the view is value and that is tied to land.
Invest in land, with a view empty or with a house. Land with great view, lack of neighbors, and a livable house is investors gold.
The title is misleading. He states that first time home buyers in the last year, will lose their equity.
If I’m reading it properly...
I am in Phoenix. We had to buy in a high market after a fire in our rental. I don’t see local prices going down as long as we are hard hit by Californians and Chicagoans who are used to high prices. Only difference is the interest rates have nowhere to go but up.
And as we all know, people are making 83.333 times what they were in 1964...
Yes. Reading the guts you are right. I hate how titles are now so provacative. Out right lie really. All to get attention of the reader for clicks. Of course we ensure they don’t get clicks but it kinda pisses me off.
I think he assumes that many Americans use their homes as ATMs. The moment they build a little equity, they take out another mortgage to spend that equity.
It might make sense in today's socialist system. If there was another real estate collapse, the government must just issue a mortgage forbearance for a couple of years. Then people could live in their unpaid houses for free.
It bothers me as well. People with morals, you’d think, would convey the truth. It’s similar to the boy who cried wolf. You lose trust and your integrity.
If you prove yourself truthful, and devoid of sensationalism, you gain respect from many more people of differing opinions.
Lara Logan comes to mind. I’m sure there are some others.
Nothing in the current financial world makes any sense to me. People paying 10 to 15% more then the asking prices on houses, a stock market that continues to go up beyond any rational expectation, crazy inflation and gold barely moving. None of it makes sense to me. I’m sitting on a pile of cash, and what I do have in the market is 50% bonds and the rest lower risk investments like target funds. I do own my modest home outright. Inflation may eat my lunch, but i won’t fall pray to a crash. And I could absorb 6% inflation out into the long term future.
I think there’s a dislocation from reality and what’s occurring currently. I “expected” a crash in March.
I still don’t see this continuing for very long, but I might just be completely wrong again.
We’ve lived through three 20% real estate “corrections” in Silicon Valley and a few 10% corrections. Yet we hung on and have come out smelling like roses.
It’s only a problem if you need to sell and move for some reason. If you don’t need to relocate, then just stay put. It may take a decade to come back, but it will.
That’s assuming, of course, that we don’t go Full Communist and enter the “You’ll own nothing and be happy” phase of communism. That might be a big “If.”
And Blackrock will be smiling all the way to the banks, as they snatch up as many of them as they can.
“I hardly think my house is going to lose 260K in equity.”
Well, it depends on where you live. If you’re in Beverly Hills, and houses like yours sell for $5,000,000, is a $260K haircut possible, or even probable, at some point? Sure.
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