Housing Bubble 2.0 is bursting, & the wipeout of fake “wealth” created by the Fed’s 16-year gusher of QE funny money “stimulus” is going to be epic. Got popcorn?
Source: Boo_Randy_Revival
Housing Bubble 2.0 is bursting, & the wipeout of fake “wealth” created by the Fed’s 16-year gusher of QE funny money “stimulus” is going to be epic. Got popcorn?
Source: Boo_Randy_Revival
10 Comments
Source: [https://x.com/randgroup/status/2054244176229810550](https://x.com/randgroup/status/2054244176229810550)
Is it a bubble or a reflection of an odd situation in the market. Traditionally, a majority of the homes on the market are “theoretically” priced to sell in their given market and that given time.
However, the amount of people that have put their homes on the market at inflated prices with the thought process of, “I’ll move if someone wants to pay X amount”.
When I was younger those houses sold because someone came and made that, “offer I can’t refuse” out of pure luck…but with the current way in which you can market your house, people seem to be making the number known to any potential buyers.
The American housing market is adjusting gradually and it’s likely to be a correction, not a crash. Maybe in some isolated areas that overbuilt it will look more like a crash, but it’s not going to be anything like 2008.
We still have a shortage of housing. There’s no crash just a slowdown in the housing market in overpriced areas. Move along.
People: “But everyone says housing is expensive because of sHoRtAgE im just repeating whatever else others are saying. End of story lets talk about next distraction”
Reality: wages havnt kept up with home prices for DECADES
Americans are conditioned to never talk about wages.
I think there’s room to correct further. There’s a shortage of houses at prices people can afford. Lots of sellers out there who can be patient waiting on the hope of an offer that can allow them to upgrade. The reality is rates need to drop for that to happen. It’s all about payment and we still haven’t seen prices adjust to current interest rates to bring payment back in the range of affordability. Once we start losing jobs in a significant way, the market will give. No room for patient sellers when they don’t have jobs to afford the house payment.
Corporations and PE will come to buy them for rentals
And how many are being snatched by corporations to hold and rent forever further locking out future owners?
people said buyer / seller ratio and the inventory was the issue, which is correct. however, the ration is now a bit less than 2 sellers per buyer, and the available inventory has nearly reached pre-covid levels.
Now that their 2 talking points have crumbled, they will move on to a new excuse.
Sellers are currently just sitting on housing, and buyers are waiting, so we are in a sort of standoff. where sellers are not lowering prices, and buyers are not buying at current prices.
but ultimately time and the fundamentals is on the buyers side. The minute we have a major economic downturn, or if unemployment skyrockets, and sellers must move their inventory, the fundamentals will kick and, and we will see a housing price correction.
I don’t think it will be nearly as bad as 08, we too much pent up demand for that to happen.
I don’t understand, are we complaining? Over inflated homes decreasing in price is a good thing. And I’m already a home owner with a great interest rate lol.