Key Indicator Hints America Is Headed For Its Worst Real Estate Crash In History

The Federalist ^ | 02/16/2022 | Justin Haskins

[fightin kentuckian]

There definitely is a bubble. My house increased 30% in value in 22 months, according to Zillow (don’t lecture me about Zillow, I know) and I see the prices houses are going for in my neighborhood. At this rate my house will be worth double in 4 more years?

This kind of increase is not sustainable. The administration is starting acknowledge this but I fear their fix, raise rates and print more money, will only make things much worse and plunge us into a depression.

[Thilly Thailor]

In my neighborhood prices almost doubled in the past couple of years yet essentially nobody’s selling. I don’t understand that.

[Alberta's Child]

I'm not sure I agree with that.

Don't just look at today. Look at the future. With our demographic imbalance we are likely to see a dramatic decline in demand for traditional housing in the U.S. in the future.

This may be one of the biggest reasons why everyone in U.S. government and industry is hell-bent on keeping our borders open. If you buy a home today and you're planning to sell it 15-20 years from now, there's a good chance the only buyers will be an extended family of 15 people from Latin America.

[Go Gordon]

You can only have a crash if the inventory is overtripping demand. I don’t see that happening with real-estate at the moment. Ask an agent how inventory is.

I can see a geographic based crash. The northeast, for example, versus the Florida market are two different animals. With tons of people moving south, I can see the supply/demand curve for housing causing prices to go down on the NE - especially with inflation and supposedly higher interest rates coming. Florida, OTOH, will continue to be a huge sellers market.

[Chickensoup]

Everyone wants to be in tangible assets

[DIRTYSECRET]

Couldn’t sell last year. Price was too high. Older folks are better off renting as they downsize their lives.

A lot of homeless folks and high prices. Government will force it’s way into the solution. It’s there too much already. They’ll just make it worse.

So I have 2 houses in California-what do I do? Why do I feel like Dr. Zhivago returning to his home after 2 years of coerced volunteerism?

[Georgia Girl 2]

Agree plus lets see just how many if any rate hikes actually happen.

[JimRed]

That is, there are way more people looking to buy houses than there are houses.

If you mean houses for sale, that is currently true. But as interest rates rise and fewer people qualify for financing in each price range it will eventually correct. Those in the lower income and credit score range will be forced to stay put or to seek low-income housing. The mid-level folks will pay more for less house. The rich will be least affected.

[Roccus]

I miss Hydroshock!

[JimRed]

In my neighborhood prices almost doubled in the past couple of years yet essentially nobody’s selling. I don’t understand that.

Where will they move? They may get top dollar, but they'll also PAY top dollar when they relocate. If they're downsizing and leaving their state it can work out nicely, but not if they're upsizing and staying local.

[Zathras]

There are 7k properties available in Phoenix and 30k real estate agents.

[FLNittany]

There is a 2,400 s.f. house in my neighborhood (.53 acre lot w/ a dock on the intracoastal) that sold for $1.55mm in 2020.

It’s for sale for $5mm.

It looks like they’ve done a lot of nice improvements to it, but C’mon Man...

[fwdude]

We never learn.

Forcing unqualified people into loans they won’t ultimately honor is what’s killing the housing market. This is going to be 2008 all over again.

[sport]

America is headed for a financial crash period. But that is what the people wanted when they replaces President Trump with that female dog, Lying Joe Biden. Enjoy.

[GOPJ]

All building supplies are going up in price... and their neighbors homes... too. So why sell?

[Flaming Conservative]

I have a friend who, 1 year ago, bought a home with 1 acre for $25,000, and just sold it for $125,000. The people who bought it moved here from California, but prices here have skyrocketed anyway.

[Rebelbase]

FYI, The latest episode of South Park mocks all the city people moving to small towns causing home prices to spike and crucifies real estate agents.

[T.B. Yoits]

'Going Mobile' by The Who

I'm goin' home
And when I wanna go home
I'm goin' mobile
Well, I'm gonna find a home
And we'll see how it feels
Goin' mobile
Keep me movin'

I can pull up by the curb
I can make it on the road
Goin' mobile
I can stop in any street
Invite in people that we meet
Goin' mobile
Keep me movin'

Out in the woods
Or in the city
It's all the same to me
When I'm drivin' free, the world's my home
When I'm mobile
Hee, hoo
Beep beep

Play the tape machine
Make the toast and tea
When I'm mobile
Well, I can lay in bed
With only highway ahead
When I'm mobile
Keep me movin'

Keep me movin'
Over 50
Keep me groovin'
Just a hippie gypsy
Come on move now
Movin'
Keep me movin', yeah
Keep me movin', groovin', groovin', yeah
Movin', yeah
Mobile, mobile, mobile, mobile, mobile, mobile, mobile

I don't care about pollution
I'm an air-conditioned gypsy
That's my solution
Watch the police and the tax man miss me
I'm mobile

Ooh, yeah, hee-hee
Mobile, mobile, mobile yeah, mm

[dfwgator]

One of my favorite Who tunes.

[crusher2013]

Exactly.

Home Prices, Stocks can crash but over time they will always go back up.

Once the dollar loses value it never gets it back.

Just compare prices to 20-30 years ago.