Yes, but the government will probably once again try to stop the natural market correction with interference, which will just make matters worse, again.
Nice cover clause there...
At least it's out there just in case it happens, then it makes him a prophet/maven.
If it doesn't, the the clause kicks in.
BTW, what goes up must come down. One would just hope that it's an orderly retreat so people can have time to make some moves if desired.
The comments above buying into this sadden me. First of all, market timing only works by coincidence. And, real estate is unique as an investment because it is unique. It doesn’t become obsolete or out of style. Technological advances in design and construction are just a part of the process and for the most part are not actually important. My 100 year old house costs about $200/month more to heat, cool and illuminate as the equivalent 2022 model Big deal /s.
Interest rates are about all that matters. And, all the players today don’t give a crap about inflation so don’t expect any 12% mortgage rates to repeat the 1980 debacle. And, if you know anything about 2010 you know it was caused by liberal democrat insistence forcing banks to make bad loans.
Right now, they can’t build them fast enough in Florida to keep up with the demand from those fleeing the great blue north. If the northerners can’t sell their home in Michigan or New York they will stop moving to Florida. That will mean that the only ones moving to Florida are the liberal elitists. That wouldn’t be good. We’ll take the truckers, plumbers, electricians, and other workers finally fed up. The ivy league blue bloods can stay put.
There’s a great reset going on. Drive up housing prices so no one can afford their property taxes, and you have us all living in equal apartments and liking it.
Drive up gas prices, and new car prices, by limiting supply and we are all in electric cars or on buses and bicycles and we will like it.
We will own nothing and like it.
The prices of homes were artificially inflated years ago to for nefarious Fed government schemes and also bring more taxes for local governments.
The cost of homes and vehicles have risen ridiculously out of the payoff reach of most people.
The bubbles bursting will be painful on many. But might need to happen.
Meanwhile, the residential real estate market is mismatched, with investment money piling into existing properties but inadequate new construction. This suggests that many large investors and lenders are unwilling to chance the long lead times required to build new because they fear a price drop and weak sales before new construction can reach the current overheated market.
Paradoxically, for a time, this adds to upward pressure on prices, making for further distortion in the market and adding to the unreliability of price signals. Eventually though, even in real estate, markets must clear and will settle at a new, lower price level, but with many having to eat their losses.