Mises:
Google reported in April that the search question “When is the housing market going to crash?” had spiked 2,450 percent in the past month, according to Diana Olick of CNBC. “Why is the market so hot?” searches had doubled in just a week.
Since 2008, everyone has been on bubble watch. The price of anything goes up, for any sort of reason, and it’s deemed a bubble, soon to be popped. The large number of searches implies those shopping for a new home are wondering if they are walking into a trap. Home prices have soared and no one wants to buy at the top.
Olick wrote, “And, in the most telling indication that the market may be in a bubble, ‘How much over asking price should I offer on a home 2021’ jumped 350% in that same week.”
However, home construction over the past decade has lagged behind, as many builders went belly-up in the 2008 crash and large builders have managed inventories more carefully.
According to Freddie Mac the US housing market is 3.8 million single-family homes short of what is needed to meet the country’s demand, wrote Nicole Friedman for the Wall Street Journal.
Natalie Campisi of Forbes explained, “The housing market has been struggling to keep up with demand since the 2010s, when the number of new homes built was slashed in half compared with the previous decade. As the demand for residential real estate has increased, the scarcity of homes for sale has created a logjam on the supply side.” more here
“According to Freddie Mac the US housing market is 3.8 million single-family homes short of what is needed to meet the country’s demand, wrote”
These so called shortage articles are such a joke. ” Forecasts tell you more about the forecaster than the future”
Of course single family housing prices are high. The WEF is telling the world that we’re going to own nothing and be happy about it, so anyone who doesn’t have a home of their own and can get the credit to buy one is trying to do so while they still can.
Simple fact is that 2 years ago there were enough roofs in USA to cover everyones’ heads. Homeless are maybe half a million, and I’m sure there are vacant places where they could go – that’s a separate issue. There were enough homes. Now, with a big building push, there are that many extra homes. Most are apartments, as people have been pushing to move away from cities (gee, I wonder why) and to own rather than rent. Which means there are a lot of empty apartments.
This bubble is nothing like 2008. It will vary by location, but I think it will soften this fall and maybe drop a little, but I don’t see any bursting bubbles. But if you are thinking about selling I’d say now is the time. Of course that’s just an opinion.
One of the signs of a bubble bursting are lots of people thinking it’s going to burst. With inflation running the way it is the Fed will raise interest rates to try (unsuccessfully) to “slow” the economy and reduce inflation. All this to help Slow Joe. The market will drop. Stagflation worse than Carter.
This is said as someone who bought at the top last time in Vegas: in the last 12 months my home is suddenly and dramatically now worth more than I paid for it in 2006. My entire neighborhood went from homes for sale on every street to nothing for sale now! The greedy builders have bulldozed square miles of Raw High desert above us. They are in the process of building literally thousands of new homes right now. You will be charged near $1 million for a thrown together piece of garbage. Every single one is sold. Many before the builder has even started construction. Whatever bubble this is has only just started!
After 40-some years in this place I call home, we’ve had a market analysis done by a realtor friend. One thing I did absolutely right, economically, was to buy the most house I could in “location, location, location”. 40-some years of sweat equity on a house with “good bones” in a sought-after neighborhood. No matter what happens to the real estate market in Seattle, this house will always fetch a good price.
It’s going to be tough leaving her, but the plan was funding retirement and she’s done her job. Now I get to sit back and make everyone write those ridiculous letters about why they want my (our) house. LOL! Going to have some bias towards Mega-Karens who will drive my commie neighbors crazy!
…Mega-Karens with the most money, of course.
I’m working as fast as I can to get my place ready to sell, then I can sit back in my 5th wheel and wait for the bubble to burst.
With 100,000+ per month crossing the southern border, of course there is a housing shortage. Even with 5 or 6 families crammed in one SFR.
The value of my home has increased 52% in value the past 2 years. I am trying to convince the wife that we need to put everything into storage, sell the house, and go live in the family beach condo in Florida until the housing market readjusts. I figure the housing bubble is about to peak within the next year and it will pop a year or two after the peak. It is a hard sell going from a 2600 sqft house to a 850 sqft king suite with a kitchenette for a year or two.
Buy a house in Mexico. You can get a real one with land for 80 grand.
Won’t the migrants be surprised when they get back home. Yanquis will have driven up the market forcing the Mexicans to migrate further south.
Big part of the problem: Wall Street companies have been buying SFD properties all over the US & turning them into rentals since the last RE bubble burst:
https://www.theatlantic.com/technology/archive/2019/02/single-family-landlords-wall-street/582394/
CC
Black Rock and others are buying up every property they can.
The Wall Street scumbags are looking to exploit the middle class right out of their homes.
They’re looking to have most people beholding to them for shelter and as leverage to insure they can never climb back out of the hole.
SCUM!