Posted on 09/15/2022 10:18:27 AM PDT by millenial4freedom
Billionaire real estate investor Barry Sternlicht said he believes the economy is "braking hard" and that the continuation of rate hikes is likely to cause a "major crash" in housing. “The economy is braking hard,” the chairman and CEO of Starwood Capital Group said on CNBC earlier on Thursday. “If the Fed keeps this up they are going to have a serious recession and people will lose their jobs." "You are going to have a major crash in the housing market and housing prices are going down," Sternlicht said. "You are seeing housing prices correct."
(Excerpt) Read more at seekingalpha.com ...
Over the last 40 years, wages and housing have gone up nearly in-line, even if it didn't take the same exact curve to get there
If wages cannot purchase more than they purchased 40 years ago, then they are stagnant. There’s no way to rhetorically dance your way around that.
I am not disputing that but you are talking about nominal prices in housing and comparing to real prices in income - you have to do both the same way. Wages have not been stagnant in income on a nominal basis nor have that been with housing. Both have gone up roughly in line with inflation (slightly faster for both) over the last 40 years.
I guess the proof will be in the pudding. I recall huge drops in market here in OC 2007 through 2009. There were great buy ops and many foreclosures in our area. Same happened in the mid 1990’s.
I dont see cutting back inventories of foreign made IMPORTRED goods as affecting US workers in any way.
The only thing worse ( evil ) than high inflation is purposely crashing the economy to “fix” it.
2004-2007 was the worst buyer class in history, the job market wasn’t good and folks used their homes as ATMs for every time the price went up. Home equity loans outstanding is lower than 2017, there are 7 million more jobs posted than job seekers right now (vs even in 2007) and this last buying class is the best in US history - read the NY fed quarterly credit report for more. Housing prices nationally did not drop in the 90s more than 1%. SF may struggle as companies move out or CA but nationally there is very little risk to housing due to a massive shortage of housing.
There are housing markets and there are housing markets.
The markets in the rotting City States are the ones with problems
Why buy an expensive house when you can live as a squatter in a tent?
Think about everything it takes to build a home. A housing crash reverberates throughout so many industries from lumber to nails, shingles, sheetrock, cement, paint, plumbing, electrical supplies...pretty spooky.
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