What’s Coming is Worse Than 2008 Housing Crash, It Will Last 8.7 Years

[Bismarksolomon]

Asking a real estate agent whether you should buy a home right now is like to asking an alcoholic whether they think you should have a drink lol. Homes in my neighbourhood that cost around $450k in sales in 2019 are now going for $800 to $950k. Every seller in my neighbourhood is currently making a $350k profit. Simply unreal. In all honesty, deflation is what we require. The only other option is for many people to go bankrupt, which would also be bad for the economy. That is the only way to return to normal.

[ClarkeGriffiny]

The housing market is inflated and oversaturated with homes being on the market with astronomical price tags just stagnant for months. It is very clear that our generation will be likely one of the most devastating bubble pops in modern history. Seeking best possible ways to grow 250k into $1m+ and get a good house for retirement, I'm 54.

[Grace.h-to]

High prices for everything have severely affected my plan. I'm concerned if people who went through the 2008 financial crisis had an easier time than I am having now. The stock market is worrying me as my income has decreased, and I fear I won't have enough savings for retirement since I can't contribute as much as before.

[micheal_mills]

I'm in Michigan, and the housing market here over the past 7-8 years has been unprecedented. Houses that were purchased for $130K in 2015 are now going for $590K. These are tiny, poorly constructed 950-square-foot homes in quiet, mediocre neighborhoods. Meanwhile, nicer, average-sized homes in better neighborhoods that were over $300K a decade ago are now selling for $750K+. It's wild.

[tatianastarcic]

Back in the day, when I purchased my first home to live-in; that was Miami in the early 1990s, first mortgages with rates of 8 to 9% and 9% to 10% were typical. People will have to accept the possibility that we won't ever return to 3%. If sellers must sell, home prices will have to decline, and lower evaluations will follow. Pretty sure I'm not alone in my chain of thoughts.

[TaggeGust]

I lost over $80k when everything started to tank. Not because I was in an exchange that went belly up. I was just stupid to hold and because that's what everyone said. I'm still responsible. It just taught me to be a better investor now that I understand more of what could go wrong. It took me over two years of being in the market, I'm really grateful I found one source to recover my money, at least $10k profits weekly. Thanks Brooke Miller.

[zwatwashdc]

This is plausible. A lot of demand is boomer demand. Which has ended. Successive generations are different. They are living differently, fewer kids, less marriage, more money spent on experiences and travel rather than kids and houses. Plus things are overvalued, so like Japan in the 90s, the growth isn’t really there. Governments can print money but the real growth isn’t there.

[StofStuiver]

Sorry m8, but its bad advice to say "dont buy a house'. Ill explain:
If inflation goes to hyper inflation and the morgage is not indexed to inflation, you will be able to pay off that house in a week. Or a day, at some point.
If its indexed to inflation, dont buy now.
And if you have free moneys (currency, bc its not real money) to spend, put it into real money. Or land.
Eventually the housing market, same as stock or bonds (already happening) will crash. But a house, you can still live in. It will still have value. Ofcourse you cant really predict anything. Bc for instance if the rest stays more or less the same, that house is a good idea, but if half the population dies, bc of wars, famine, plagues and what have you, the demand for houses will be non existant. Then again, if a war destroys more houses than people, its the opposite.

Same for G and S (real money). Thats a good investment, but if govs make it illegal to trade or even have, then you cant do much with it. Theyve done it before.
Nothing is certain.

[YawehismyGod]

Duck these prices. A home is anything you can sleep comfortably in. Not a slave sentence.

[greigsanderson]

Your title is guess work ONLY. No one knows that.

[voitel]

The market is overvalued. Look at the stock market growth vs money printed. The market is overvalued and housing is overvalued alongside the market.

[drg]

With all the money printed and pumped in the economy how can prices fall? If anything they should have fallen with the high interest rates, in future as interest rates fall, real estate will only go up. And they haven't even fallen with the high interest rates.

[joecordoni]

Dooms and depends where you it's a bull market until it's not don't listen to this guy

[misterogers]

The demand is so high with millennials wanting to buy houses, combined with the lack of supply and bank regulations will not lead to a depression the scale of 1929. We are due to a crash, but 95% stock market and 50% crash, heck no. A lot has changed in 90 years. Yes, FDIC can't cover everything, but it did not exist at in 29 or the prior failures. People compare the upcoming crash to 08 or 29, but people should be looking at the stagflation from the 70s instead, especially if the fed succumbs to cut rates earlier than they should. Yes, yield curve is inverted for a long time, but the issue is heavily bifurcated compared to the universal misery of before. Bond market is soft, but not like you described. There is also already extreme fear in the delta between junk and high quality bonds since they are discounted much more than normal.

[KazuAkihiko]

Thanks for continuing updates I'd rather trade the stock market as it's more profitable. I make an average of $34, 500 per week even though I barely trade myself.

[IXIFrostIXI]

Doubt it. Everything is inflated . People try to make it harder than it is. Homes will be a lot more in another decade too

[oriolpinto]

The section on regulatory challenges was eye-opening.

[danturismo]

In Australia, you cant withdraw your money without giving the bank 24-48 hours notice, even for amounts e.g. $10, 000. I doubt Australian banks will allow a run.

[АйтамгаСалибайуулу]

As a man who took a look, love you brother) good info

[Bloodfire]

A housing market crash is the BEST time to buy if you're not a seller, or if you're a seller who wants to own the property outright instead of juggling multiple expensive loans. Get it while it's cheap.