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Just had a brainstorm! The size of the real estate bubble is related to the size of the national debt versus GNP. If you look at historical data this is always true. Bad news though, unless more products are produced domestically it looks like the real estate bubble will never truly deflate. Our nation is in seriously bad trouble.......
The math does work. The large trade deficit was driving the monetization of the housing market.
But housing bubble 2.0 is from The FED's printing press.
The math does work. The large trade deficit was driving the monetization of the housing market.
But housing bubble 2.0 is from The FED's printing press.
I said myself years ago that foreign money was a possible factor to support our real estate market post bubble. Its not like there was a lot of choice. It was not coming from savings or wages of the middle class so it came from the 3 other possible places. It came from foreign money , hedge funds consolidating, manipulating and controlling the market with shadow inventory and the Fed.
There were other ways, but that would have helped the middle class.
The “soaring” new home sales earlier in 2015 were off some of the lowest new home sales numbers over the past fifty years.
...
The Reality: New home sales are atrocious, the low sales are not “temporary” and the housing market is not “sturdy”.
The housing recovery has been in price alone. New and existing home sales have been sub par mostly due to rising home prices while wages stagnate
Just had a brainstorm! The size of the real estate bubble is related to the size of the national debt versus GNP. If you look at historical data this is always true. Bad news though, unless more products are produced domestically it looks like the real estate bubble will never truly deflate. Our nation is in seriously bad trouble.......
Huh? The last big bubble inflated and deflated during a time when national debt load was going up throughout.
The reason real estate bubbles up is because the US dollar loses value due to deficit spending. Foreign investment increases, real estate inflates, very simple!
Not seeing it for 1925 Real Estate Crash.
Just noticed this thread is from 2007. Better left for dead.
Affordability via low interest rates or Voo Doo economics using non standard 30 year mortgages pretty much is the main impetus in a declining market where the price of Condos and Townhomes start to rise as the bread and butter 3 bedroom , 2 bath houses become unaffordable to the average family is one of the leading indicators that we are heading for a bubble.
When the easy money train stops and hard money loans kick in again, the money pipelines will dry up and source money will be expensive to get.
We've seen this before and we will see it again.
This 2011 article describes it well.
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