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I guess we’ll see
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The only good bubble is a bubble butt
The car bubble is the new housing bubble
Bank says I can afford a house, but I know I can’t afford a house
Just FYI Vegas homes dropped like 80% in 2008. No matter how fucked up banks are that is unlikely to happen unless some crazy unforeseen catalyst occurs.
That’s true tho. You can’t have history repeat it 1:1, that would be too easy.
If there is a housing crash it will just show some similarities with 2008.
It won’t fall for the same reasons, but it will still drop as it will follow the overall market/economy.
I just want reasonable wages with reasonable housing. Apparently that’s like saying you saw Santa Clause during a full moon on a leap year, with 10 feet of snow and the weather wasn’t too cold.
Lol good luck trying to get people to part with their home loans now sitting at fixed 2% rates
If the housing market falls like it did in ’08, any of you folks waiting to buy a house but can’t, will likely be laid off and again, unable to buy a house.
Starting to look like a yahoo message board in here.
Remember how unpopular going cash gang was 10 months ago? All I heard was “u are so stupid, inflation will eat your savings”. Meanwhile I see portfolios on average down 20% (obviously rookie numbers for u degens).
If the UK is facing a pension fund crisis all of a sudden.. imagine what else they’ve gambled away on our behalf.
There are very few truly subprime mortgages now, I work in mortgage lending and a large majority of clients over the past year are outright declines
All profits make their way back to property. It’s called economic rent. This draw down is lead by the stock market and rate rises. Not by the falling out of the property market.
I think the equity markets will correct heavily but I don’t see property falling below pre covid highs.
Eventually, we will have a property lead crash and then It’s time to head for the hills.
Goes right next to “Bull market will stay strong at least til 2025”.
I have no idea, but there is reason to believe that this time will be a slower deflation of the bubble (possibly longer lasting, though).
In 2008, there were lots of bad loans on adjustable rates or even teaser rates. Currently, 70% of mortages are locked in at rates below 4% and buyers are much more financially sound overall.
People locked into low rates will be very hesitant to sell, knowing that their buying power on their next house will be diminished by high interest rates. This could lead to continued low inventory.
Housing starts for free-standing houses are already dropping off, and building was constrained by supply chain issues and labor shortages. In 2008, the crash came near the peak of a construction boom.
I think prices will definitely drop, but it might be a slow stagnation, rather than a sudden crash.
If you need the housing market to collapse to buy a house you will be amongst the many whose economic situation will be devastated at the same time.
As selfish as it sounds… I want it to burn because I’ll be buying soon
It wont. The market was way different back then. Unlike then we have a housing shortage not a huge influx of new builds and there are way less subprime mortgages now. There will be a stagnation and maybe a bit of going down but nothing like 2008.
There could be a moderate decline caused by overextended AirBNB owners. Recession + higher cost of living = traveling gets cut. And now if you’ve gone over your head to buy homes to let out, you don’t have the option of being able to refinance again like a lot of these people did during the pandemic to get through it. If we see a humongous increase in unemployment, that could trigger it.
But a complete national real estate collapse? Not likely. It’s very simple, to get a collapse in prices you need some kind of force making people have to sell. In 2008, it was a legion of homebuyers on ARMs, but ARMs haven’t been prevalent in recent years. Practically the entire home owning world locked in insanely low interest rates. Nobody is going to sell a house unless they get their figure.
Now if unemployment skyrocketed, that could trigger selloffs because people can’t even pay their comparatively tiny house payment and that could create the supply needed to drive housing prices down. Does anyone actually think unemployment will get that high?
If i told you in 2010, that in 10 years from now:
– Donald Trump, real estate mogul billionaire, would be President of the USA.
– a pandemic of questionable origin would force near draconian measures that would be taking place all around the globe, places all over the world would be shut down & mask wearing would become extremely controversial and politicized?
*Would you have believed me?*
*Anything* can happen now. No one knows.