The entire article posted here: https://freerepublic.com/focus/f-news/4038848/posts
I don’t buy this.
There is currently a huge imbalance between supply and demand for real estate.
That is, there are way more people looking to buy houses than there are houses.
This comes as a result of 10 years of underbuilding.
Blackrock will keep buying.
Sold two props recently-
Had for a few years- good returns.
I’m gonna wait til the bounce comes back.
Not gonna try and catch the bottom.
Did the same thing last time.
Like Trading Places when they started buying back.
Smile, pick and choose, no rush.
They’ll be plenty more.
Bring On The Bust.
Letting the air out of one bubble will deflate all the bubbles.
And it’s something they have to do eventually, right?
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.
In our area there are very few houses on the market these days, as they say, not much inventory. Of course, a lot of refugees from New York are moving in. So there is upward pressure on prices. Add to that the huge over-printing of dollars over the last couple of years, and something has to give.
Houses have essentially doubled in price over the last five years. Of course, gasoline has doubled in price over the last year, too.
I’ll let you know if I decide to sell my house. Then you’ll know exactly when the bust is going to occur and I can lose my shirt (again).
The author needs to check his data. The Federal Funds rate is the rate the Fed charges member banks for short term loans. In most cases, “going to the window” for these funds is to cover intra-day shortages on reserve requirements. The rate peaked under Carter (over 20%!) and, except for a short dip in the early 1990’s, didn’t get under 4% until 2000. See: https://www.macrotrends.net/2015/fed-funds-rate-historical-chart
This is yet another case of some idiot wanting to be seen as an expert by declaring something before it happens.
It’s like this stupid person I knew that always declared she had a dream that the space shuttle was going to blow up every time it was to launch. So, when Challenger blew, she proclaimed that she “knew it!”
Certainly there will be some sort of crash to pay for all the economic irresponsibility going on now.
What I’ve noticed, as a concerned observer is that there are LOTS of people predicting a crash, in all manner of ways. Eventually one will hit it right, and that will be the person who becomes crazy wealthy.
People running out of government pandemic money is not inherently a real estate bubble.
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.
In my neighborhood prices almost doubled in the past couple of years yet essentially nobody’s selling. I don’t understand that.
I miss Hydroshock!
There are 7k properties available in Phoenix and 30k real estate agents.
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.
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.
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.
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