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To be fair it wasn’t the feds that created the last housing bubble.
They ended up having to bail us out of that giant mess. That disaster was ALL on the banks and the rating agencies.
Of course it was the FED and cheap money, low interest rates. Without cheap money and ZIRP there are no Speculators and no bubbles. It’s that simple.
Just watch what happens to all bubbles when interest rates keep moving higher and higher and our US Dollar becoming stronger and stronger. Also watch what happens to Housing Speculators....lol.
The FED created Frankenstein from the housing market.
Quick history lesson: The Clinton administration pushed relaxed lending standards to encourage home ownership. Then the Bush and Obama administrations tried to prop up the housing market when the foreclosures started to spike from the higher default rates creating a worse crash. The government was trying to fix the mess the mess it created and then it also bailed out big companies, deeming them too big to fail. Google it if you wish as this is the very short version.
Secondly, I think most agents would prefer a balanced or even a buyers market over this current mess. I know I would. Agents don't create buyers or sellers, we just try to help someone who has made a decision to buy or sell. I know we certainly don't control inventory levels or even the amount of investors in the market.
If you'd like to try and have a rational conversation I'm game. However, I mostly just posted this for those readers to form their own, educated opinions on things.
Quick history lesson: The Clinton administration pushed relaxed lending standards to encourage home ownership. Then the Bush and Obama administrations tried to prop up the housing market when the foreclosures started to spike from the higher default rates creating a worse crash. The government was trying to fix the mess the mess it created and then it also bailed out big companies, deeming them too big to fail. Google it if you wish as this is the very short version.
Secondly, I think most agents would prefer a balanced or even a buyers market over this current mess. I know I would. Agents don't create buyers or sellers, we just try to help someone who has made a decision to buy or sell. I know we certainly don't control inventory levels or even the amount of investors in the market.
If you'd like to try and have a rational conversation I'm game. However, I mostly just posted this for those readers to form their own, educated opinions on things.
Agents? Agents for what in this age of internet listings and DocuSign? I think most buyers and sellers don’t need useless agents and pay them commission. We need to eliminate these agents completely from the buying and selling process.
Location: Formerly Pleasanton Ca, now in Marietta Ga
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Quote:
Originally Posted by Snowman05
I argue that real estate hasn't continued to increased in value when you look at real inflation. This can at least be observed in cities with a long history. As soon as interest rates go up let's see how many investors stay in real estate. Year over year US sales are already past the plateau. I witnessed traumatic stories after the '08 housing crash. Tell those people that houses indefinitely increase in value. I'm sure they would find that reassuring after paying 100,000s in interest, taxes over 30 years.
It doesn't go up, people only pay more. Investors do better but the housing market isn't meant to be used like the NYSE. I believe in holding the right kind of real estate, but it's a stretch to call it an investment that only rises. It's a poor man's investment where the dumb money flows.
I’m an investor and if rates go up I will continue to be an investor. You have a narrow view of real estate.
If rates go up and houses go down, I’m buying more as long as numbers make sense. I invested when rates were 18%.
If rates go up, fewer buyers mean more renters, higher demand, higher rents which can offset higher purchase prices.
If rates go up I’m staying in real estate because the loans I have are locked in at low rates, why sell?
My self and other investors are on the sidelines waiting for housing to drop.
Agents? Agents for what in this age of internet listings and DocuSign? I think most buyers and sellers don’t need useless agents and pay them commission. We need to eliminate these agents completely from the buying and selling process.
"Choice."
People WANT the support they get from agents.
When they don't, there will be fewer agents, but we are not there.
I’m an investor and if rates go up I will continue to be an investor. You have a narrow view of real estate.
If rates go up and houses go down, I’m buying more as long as numbers make sense. I invested when rates were 18%.
If rates go up, fewer buyers mean more renters, higher demand, higher rents which can offset higher purchase prices.
If rates go up I’m staying in real estate because the loans I have are locked in at low rates, why sell?
My self and other investors are on the sidelines waiting for housing to drop.
You are in La La Land. If the FED is serious this time to pay the PIPER you as a real estate Investor will be CRUSHED hard and no one will care about your real estate. US Dollar will be in demand and you will beg others to buy your properties if you ever decide to sell. Rents will go down dramatically and bankruptcies and defaults will run wild. It could last for a decade or two. We may even have a civil war, world war. I guess some of you have no idea what it means to deflate this enormous bubble in everything that our FED has created. We need to deflate from the current 360% debt to GDP down to 130%. Last time we had to do this it required WW2.
Agents? Agents for what in this age of internet listings and DocuSign? I think most buyers and sellers don’t need useless agents and pay them commission. We need to eliminate these agents completely from the buying and selling process.
Aren’t agents now encouraging buyers to give up contingency based offers so that they can land the house with multiple offers?
I’ve spoke to agents who hate hate hate doing this but see that there is no other way in this market.
Is that the agents fault or the markets fault?
Of course it was the FED and cheap money, low interest rates. Without cheap money and ZIRP there are no Speculators and no bubbles. It’s that simple.
Just watch what happens to all bubbles when interest rates keep moving higher and higher and our US Dollar becoming stronger and stronger. Also watch what happens to Housing Speculators....lol.
The FED created Frankenstein from the housing market.
Interest rates were not cheap in 2008.
They were twice what they are now.
Interest rates were not cheap in 2008.
They were twice what they are now.
The FED started raising interest rates back in 2004 and housing bubble imploded in 2007/2008.
Than Bernanke lowered interest rates again. Since 2008 markets have been flooded with cheap money and we have a mother of all bubbles today in everything. The biggest bubble in the history of the world.
The FED started raising interest rates back in 2004 and housing bubble imploded in 2007/2008.
Than Bernanke lowered interest rates again. Since 2008 markets have been flooded with cheap money and we have a mother of all bubbles today in everything. The biggest bubble in the history of the world.
The blame falls mostly on the bankers who encouraged Buyers to lie on their loan applications. Actually filled out the applications with false information. They were not qualified and should not have been given the loan.
No one in government wanted unqualified buyers to purchase homes. The blame also falls with the rating agencies who did not evaluate the quality of the loans securitized and falsely provided high ratings.
The subsided low interest rate loan programs for low income families required extensive counseling before they would qualify and these loans were kept in house and not securitized. Those were rarely the loans that went into foreclosure.
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