Housing Market Bubble 2021 - When Will It Pop?

Not many people would have predicted that off the back of a global pandemic we would have seen a housing market bubble start to inflate but for many developed countries, that’s exactly what has happened.

So in "Housing Market Bubble 2021 - When Will It Pop?", I look at what has happened to house prices globally, which countries have the most expensive real estate why. I’ll then also examine UK house prices and the US real estate market in more detail and share with you a forecast for what may happen to house prices next.

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DISCLAIMER
All information is given for educational purposes and is not financial advice. Ramin does not provide recommendations and is not responsible for investment actions taken by viewers. Figures that are quoted refer to the past and past performance is not a reliable indicator of future results.

Timestamps
00:00 Introduction
00:31 Positive Factors
04:02 Negative Factors
06:15 UK Housing Market
09:22 US Housing Market
12:22 Forecasts

#HousingMarketBubble #RealEstate #PensionCraft

[SP-cxqi]

Increasing house prices could be a symptom of inflation. People actually think they're getting richer as prices increase but it could be that their currency is actually being devalued by government/central banks which in turn reduce their purchasing power.

[Dr.Stacker]

Did I miss the part where you explain when it will pop and provide your forecast?

[Demon_Mx]

Problem with the delinquency chart is it doesn't take into account that housing relief act and the fact they haven't truly started to enforce the delinquency yet

[carcarroom]

Ramen is the best man on here! No fodder, hysteria or bloviating waffle! What a star!

[Loundsify]

Hi do you think there could be a dip in the UK market when furlough ends? Me and my partner are absolutely disgusted that prices have shot up as much as they have. An identical house sold for £210k and this year £250k. We're fortunate to have a 30-40% deposit for our next house but the prices make it very hard to commit.

[jjjj]

Why did the Chancellor implement stamp duty relief during the pandemic? This did very little to help solve the affordability issue in the UK. House price growth ought to slow down after this tax holiday is gone.

[PresidentGas]

4 months after this video and the US is in a VERY different place. Inflationary pressures are going to destroy the stock-market soon and with it cause another global financial crisis. That in turn will burst the housing bubble. 2022 is going to be ugly.

[peaceandlove]

Young people are marrying later and later and are unfortunately less and less interested in long-term relationships. Imo this trend is going to continue and we’ll see renting continue to be the route most people follow…

[gomcezd]

I think there's going to be a correction for the rural house prices that have shot up so hard, I think too many people have banked on remote working forever and are going to come under pressure to move back to urban centres and be in the office.

However I think underlying this will be a slight uptick in inflation, not enough to prompt an interest rate rise (or if so quite minor), which will dampen house prices in the short term but then will be compensated with wage growth inflation

[erjjet]

Have lived through 3 bubbles in house prices, only thing that pops them eventually is interest rates suddenly making overleveraged buyers hurt, which kills the market and desperate people trying to sell to avoid negative equity on a house they can no longer afford. I can't see interest rates going to high that the pain becomes intolerable anytime soon. Plus still more and more people chasing too little affordable real estate. My son has waited 2 years for the 'correction' and has had to buy or risk not being able to, as his capability to save the deposit is outstripped by house price increases. As a first time buyer, he's unlikely to be alone, so the market is still stoked at the base level. What would have killed his intentions would have been an increase in mortgage rates. Didn't happen, not likely to happen much before 2023. All IMHO and the crash probably starts tomorrow :-)

[zwatwashdc]

The US is a large country with many markets. In some cases it will make sense to buy, but be prepared to lose 20% - 40 % of the value if you have less than a 15 year time horizon. That means the upside might be limited. It is worth it if you get the lifestyle you want from the location of the house. In most cases, there are so many completely random 700, 000 houses in completely random locations in the US. I don’t see that holding.

[horsk]

I just returned to the UK after 20 years working abroad. Im shocked at how expensive it is here now. The last few years I have been in japan and its much cheaper to live there, especially if your out of town.
The damage from Brexit looks like its been camouflaged by corona for now but once its out of the way, companies will find shipping costs to be a big drag on their profits, even sending an engineer over to do an instillation or repair will require a lot of paper work.
The stamp duty savings have been offset by the price increases which considering how much borrowing the government has made makes me wonder what their logic was in cutting it.

Im not sure how much the real death rate is above the average year but I have wondered how much of this housing boom is fuelled by inherited money. Grandma died, lets get a bigger house of pick up a buy to let.

[matteo-cuuv]

There’s been many house price bubble videos including on this channel, but the price just goes up. And so long as houses are not being built ( and they aren’t ) things won’t change

[ambrosiad]

in the UK, the stamp duty holiday will be ending soon. On average it takes 3 months to tie up the legal suff, that means July will be a key month for house prices.
As a building surveyor working in the London property market, it is still busy, but I'm seeing the frenzy begining to slow down.
If those economist forecasts dont include goverment stimulus and interference in the property market, they cant be accurate

[avenger]

I bought my house 15 years ago. I looked to sell 2 years ago, and at that time our home was going to go on the market for about 30% more than I paid for it. Now, keep in mind that valuation was after two years of already incredible growth in the market in my area. A home just a few doors down with the same floorplan as my house and quite comparable just sold for what would be the equivalent of a further 40% increase in home value on my house. In other words, if I were to sell today at that price, my home would have increased in value by 70% over what I paid for it, with the vast majority of that increase in the last 3-4 years out of the 15 years that I've owned it. Home I looked at 2 years ago and didn't want to buy, are now out of my price range and unaffordable. Tell me how we're not in a housing bubble.

[reno]

Here in Spain salaries has been flat for years as unemployment never recovers, anyway house prices rises as people here doesn't invest in anything but houses... Stock market is a casino people tend to say...

[The_Unintelligent_Speculator]

I am saving my FED printed cash monies for the bubble pop. Timing the market and time in the market is key 🔑

[ridethelakes]

Good analysis but with a huge omission... There was no mention of demand. The UK population has exploded in the last two decades and housebuilding hasn't been anywhere close to keeping up. The government estimates of EU citizens in the country was well over two million short, that's four times the population of Manchester in the country that we didn't know about. And how many non EU nationals are here that aren't counted? Whatever the estimate it is likely to be far below the real figure. With such huge demand there will be significant upward pressure on house prices and rents for years to come..

[Sean]

In Ireland (and particularly Dublin) where house prices are already insanely high, we're now only getting new supply of around 10-20, 000 homes a year (at most), versus a demand/need for something like 45-60, 000 a year based on who you ask. I got the only apartment I could afford as a first-time buyer on the outskirts of Dublin a couple of months ago, and prices in the area seem to have risen by 10% since then! Huge grain of salt for the Economist's forecasting model

[stephenrichards]

I've just sold a house in france. I paid 202000€ 20 years ago and sold it for 210000. That's pretty much how the french rural market goes