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I was talking to my aunt who is quite a few years older than me says she thinks there is a housing bubble coming and it is coming soon . How many of you think that also ?
I was talking to my aunt who is quite a few years older than me says she thinks there is a housing bubble coming and it is coming soon . How many of you think that also ?
real estate is to localized for a general answer that is worth a darn .
Define soon. A downturn or collapse is always coming. It could be a few months or a few years or even a deceade away. no one can do anyhting but guess when it will come, but anyone can accurately say it is coming. If anyone would predict when with any accuracy, they would be Billionaires.
In northern VA, the housing market is pretty strong even with the effects of the pandemic.
On my street, one house closed at the end of April. Two houses came on the market last week, and when they went "live" both already had pending contracts.
I was talking to my aunt who is quite a few years older than me says she thinks there is a housing bubble coming and it is coming soon . How many of you think that also ?
I was talking to my aunt who is quite a few years older than me says she thinks there is a housing bubble coming and it is coming soon . How many of you think that also ?
What basis does your Aunt have? Is she an Economist? Work in finance? Work in real estate?
I used to think I was small time savvy went it came to money, real estate and investing.
In months and years preceding the housing boom we could not believe the money being poured into real estate. My wife who was pretty high up in residential and commercial lending at her financial institution (she worked compliance) was one of the few who raised the flag. As fast as they closed mortgages they were aggressively courted to sell them. It took many years to recover both in real estate and in the stock market. We were positioned well but it shook me to the core seeing some family and friends lose so much equity in their homes after purchasing them high. Some walked away.
Many years later we enter 2020 as a raging bull market and a pretty good real estate market that could only be brought to its knees by a worldwide virus that crippled the US economy followed shortly by civil unrest that was simmering then brought to life by the tragic death of someone in police custody.
Protesting, rioting and looting ensued but in the last 60 days with all this going on the stock market has rebounded making many of those who jumped into the low very rich. All in last sixty days as unemployment numbers grew.
Real estate except for those over extended with now empty Air B and B has done well.
The largest group of boomers who were born in 59 & 57 continue to retire in droves and fuel home buying in many of the those income tax free states enjoying what has been described as the lowest mortgage rates in 50 plus years along with other US home buyers.
The moral of this short winded post is, I don’t think anyone knows anymore of what real estate or the stock market will do. There is no playbook for what we are seeing. I witnessed 10 & 11% interest when we bought our first house and saw it slowly settle lower over the years. At 60 and in our final home I shake my head in disbelief at the 2.25% 15 year mortgages.
Mr trump predicted one in the debates
The issue is if banks have huge repo inventories but are bolstered by federal reserve they will never sell and become landlords instead of lenders
With the on-going forbearance, it's unlikely that there will be another RE downturn soon. And with the Feds backstopping the banks it's going to be a while before the housing market cracks.
However, if there's a second and bigger covid 19 wave, all bets are off because fatalities will force a flood of properties due to deaths and people fleeing the major cities.
Quote:
Originally Posted by phonelady61
I was talking to my aunt who is quite a few years older than me says she thinks there is a housing bubble coming and it is coming soon . How many of you think that also ?
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