Posted on 03/31/2022 7:52:53 PM PDT by ChicagoConservative27
Homebuyers have faced a tough proposition during the pandemic: Swallow rapid price increases and forgo typical steps like house inspections, or risk getting left out of the real estate market. Those dynamics have caused some observers to question whether the U.S. is repeating the housing bubble of the early 2000s, which led to a painful housing crash in 2006 and the Great Recession the following year.
The answer, warns the Federal Reserve Bank of Dallas, is that the market is showing "signs of a brewing U.S. housing bubble."
(Excerpt) Read more at cbsnews.com ...
More Federal Regulation will fix this in the Blink of an Eye!
It’s been brewing a long time.
Translation from the Fed: We’re about to take the punch out of the punch bowl like we did in 2007.
There are no shades of 2007 except prices have gone up
The $5.5 TRILLION WOKE Brandon’s budget will fix all problems /S
Your sarcasm tag was not necessary.
“More Federal Regulation will fix this in the Blink of an Eye!”
Actually it would have prevented the 2008 bubble. Instead, they sat back and watched the banks dish out HORRIBLE loans to people who could never pay them back. Bush even had a term for that - he called it ‘the ownership society’.
So, in this case, the sooner the brakes are put on (which hopefully is happening now with rising mortgage interest rates), the less damage that will happen.
DO IT!!! I'm a CASH BUYER when property values DEFLATE after all this "free money" and flight out of the big cities stops as a result.
NFW I'm buying a home in this artificially over-inflated market.
It is much worse than 2007 now.
In 2007 national debt was much lower than GDP. Now it is higher than GDP, first time since WWII.
In 2007 we did not have Obama or Biden in white house.
And even worse, WORLD WIDE debt is off the charts now.
Next crash will be mother of all crashes, making the housing crash look like walk in the park.
Even more so when distressed owners push marginal properties on the market. Look for fire sales in western Massachusetts and the rest of rural New England.
You are misinformed, Bob.
Correct. The housing market collapse of 2008 was completely due to the Federal Reserve relaxing standards and allowing easy financing which prompted too many buyers to purchase homes they weren’t otherwise qualified for.
The situation as it stands today is completely different. Smart money, money from large investment firms and from China is driving the market today.
Home prices are higher and higher and I do not see any end in sight. Things may slow down. But they won’t crash
High inflation -> Fed must raise rates -> Economy slows and mortgages cost more per month -> Housing prices go down
Phase 2 of the Great Reset. You'll own nothing, and be happy. Just like the good ol' days: feudal times. Lords and Vassals again. What a hoot.
“You are misinformed, Bob.”
I watched the events back then IN GREAT DETAIL and made a good deal of money shorting stocks like Countrywide, Washington Mutual, etc. (6 total). It was the ONLY time I actually made money in stock market - and it was EASY, because I read the loans, the Option ARMS, the loan-to-income ratios (some counties in Florida posted the loan paper on line). There was never any doubt.
Call me dumb, but I bought a really nice car with my money (particularly Countrywide, as their stock went to zero).
Again, the government could have stopped it. The State of Georgia saw it too, back then, and nearly stopped it, but Countrywide threatened them (by threatening to stop writing loans there), so they backed off - and so they paid the price with the rest of the country.
If you have some other version of what happened, feel free to tell me what yours is, rather than calling me an idiot on this topic.
Beyond that, I'm Texas bound.
Bttt
What’s going on is simple - everyone with can is trying to buy land before the dollar collapses.
They have to crash eventually. They’re gonna run out of buyers who can afford these inflated prices, FFS!
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.