🤷♂️ niece needed a place to live for college. Was sort of why the hell not scenario that ended up being a massive cash advantage- but with inflation as it is, the realized gain isn’t as good as it appears.You're not typical.
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🤷♂️ niece needed a place to live for college. Was sort of why the hell not scenario that ended up being a massive cash advantage- but with inflation as it is, the realized gain isn’t as good as it appears.You're not typical.
So crashing the real estate market cheapens food, gas, and everyday necessities? Just trying to understand how this works?
How would that create risk? It won’t happen anyway because you can’t build new houses cheap right now. But damn near everyone is paying a negative real interest rate on their homes. Banks are scrambling right now, and it’s fun to watch them squirm (I despise banks almost as much as politicians).I don’t think we need an all out crash in the real estate market, but a moderation and maybe a little drop in valuation is certainly needed. Let’s hope we don’t get a full blown real estate crash. That would present great risk to the overall economy. As of right now, it appears we are in a more normal real estate market, not a complete meltdown.
Im not sure it would really change food and gas. That is why the fed separates core and headline inflation. Core excludes gas and food and is the portion they feel they have more price control in. Shelter accounts for over 30% of the core number. Moderation/drop in this portion and we will naturally see that number come down, eventually. Also, as the demand falls for housing, so to does the demand for building supplies and household goods. Eventually, the supply will catch up and we will continue to see those costs come down, hopefully.
How would that create risk? It won’t happen anyway because you can’t build new houses cheap right now. But damn near everyone is paying a negative real interest rate on their homes. Banks are scrambling right now, and it’s fun to watch them squirm (I despise banks almost as much as politicians).
I just don’t see it as that big of an issue. Prices will fall, sure. However the inflation we are experiencing (coupled with wage growth that doesn’t match, but is higher than interest rates) will save us from a collapse. This isn’t ‘08, this is ‘79. Lots of adjustments going on in business right now because almost no one has experienced this crap before.You certainly won’t hear me disagree with you on the banks. Too big to fail, right.
With the balance sheet the federal reserve is currently carrying and the amount of debt our government is running, I’m not sure we could handle another 08-09 type of real estate meltdown.
I agree with pretty much everything here, except Biden wanted to spend even more than he did while downplaying the obvious inflationary risks. He needs to own his portion of the blame.Covid is the major driver of inflation. The first two Covid relief packages were needed because of the lockdowns. The 3rd, was not needed, IMO. Things were open and people were going back to work.
So if you want to blame Biden for any of this, maybe adding 1.9 trillion when it wasn’t really needed. But even that’s a bit of a stretch.
Once we locked down, the supply shortage we’re seeing now was inevitable.
I don’t blame Trump for this either. I will say all of the Covid relief packages were too broad. People like me did not need those checks. Congress could have been more surgical with these.
I just don’t see it as that big of an issue. Prices will fall, sure. However the inflation we are experiencing (coupled with wage growth that doesn’t match, but is higher than interest rates) will save us from a collapse. This isn’t ‘08, this is ‘79. Lots of adjustments going on in business right now because almost no one has experienced this crap before.
It’s possible to find advantageous situations, but multi family properties are beyond overpriced at the moment. That’s where the money is, and people are paying premiums on it like we’ve never seen. I may have to sit on my latest acquisition (which sucks because it’s a huge house that I don’t want/need and will have to eat utilities)oh, I concur we aren’t anywhere near the 08-09 situation. I am actually pretty hopeful we get a nice correction in real estate so I can take advantage.
Ummm. Hmmm. Nationwide they’re absolutely rare. But keep at it son.I don't know if OP was alive in 2008/09, but corrections in the real estate market are not some new phenomenon.
Ummm. Hmmm. Nationwide they’re absolutely rare. But keep at it son.
Confused by OP. You wanted to keep seeing prices appreciate by 15-20%? That’s unsustainable. Not really difficult to understand.
No. It’s been majorly overpriced since 2020. It needed a heat check.Economists had predicted a 4% decline (it was 10%). Sales were down 31% year over year.
This marks the lowest level on the pending sales index since June 2010
You're not alarmed by the severity of this pullback?
This aged well.It doesn’t matter. The entire public, save for a few losers on here, blame Biden. No one wants excuses. The reckoning comes Nov 8.
This aged well.
LMFAO, clown.Omg, who has been pushing this for months now? I’ll give you a hint: me. Biden threw gasoline all over this problem, then acts like it didn’t happen. He’s a moron. Dems are morons. And it wasn’t bipartisan.
NoEconomists had predicted a 4% decline (it was 10%). Sales were down 31% year over year.
This marks the lowest level on the pending sales index since June 2010
You're not alarmed by the severity of this pullback?
Hell no, you should have been around in the 70s, when i bought my 1st house, 15.5 % and that was with a nice down payment.Economists had predicted a 4% decline (it was 10%). Sales were down 31% year over year.
This marks the lowest level on the pending sales index since June 2010
You're not alarmed by the severity of this pullback?
Hell no, you should have been around in the 70s, when i bought my 1st house, 15.5 % and that was with a nice down payment.