Economist raises alarm over 'inevitable collapse' in US home prices

If it were in good faith, there would have been 0 in bank bailouts and all the cash printed would have gone directly to the people and there would have been no eviction moratoriums.

The institutions reaped massive benefits, the people got a pittance. Same as it always is.

Ffl had it right, JUST enough to prevent actual rebellion while filling the pockets of banks and investment firms.

 

No truer words have been spoken.

All asset classes are inflated from the Fed’s pumping essentially free money out to support the government’s unsustainable debt spending.

 

Exactly

 

The bubble needs to pop. This market is insane. Around here prices are up 50 - 60 % higher than they were a year ago. Who's foolish enough to buy with these kind of prices?

 

People that are stupid and get free money from the government those are foolish enough to buy

 

When?

 

There were loan deferments. They’re starting now to do reworks, adding it to the end of the loan. I’m glad I didn’t do it. I had it all set it up, but decided not to. Almost at dropping my PMI, now. 3.375% FHA loan, which is assumable. I’m hanging onto this mortgage. I know someone who did though, now he’s going through a rework.

 

The existing market has already slowed a bit. New housing has also. Lumber prices are coming down. I seriously doubt a big housing crash, just a minor correction, in most parts. The crazy overheated markets will definately crash, down at least 1/3. Phoenix, San Francisco, Southern Florida, The usual areas. Considering the gains made. A correction might as well be considered dodging a bullet. Won’t be anything close to 2008-2009-2010-2011 losses. Someone with cash in that market, could have gotten very rich. Still can’t believe the prices I saw. 1/3 the previous pumped up appraisals. About 50% real market value. Prices on average homes might go down 20% this time. All depends on how long the correction lasts. If the markets still short on inventory next spring, maybe less than 20%. Not that I know, no one does. If I did know, I’d be rich from 09, instead of being one of the foreclosures back then. I had doubled my money on a previous house in 8 yrs. So it goes.

 

Our young neighbors across the street bought 6 years ago with, they claim, no money down. Their mortgage payment has been eating them alive the whole time and have come close to foreclosure several times. $165,000.

They put the house on the market last week, for $269,000. They had 4 offers in 4 days. All above asking price. They accepted a $281,000 offer and will sign papers this week.

She said their net cleared in pocket will be $120,000. I'm happy for them. She said another house on the street also sold last week for $280k.

Both houses are smaller than mine and older than mine. I'm thinking that I might have to see if I could get low $300s for mine with the market this insanely hot.

I lost $50k over what I had paid for a second home in Montana when I sold that one in 2015. Was on the market for 7 years.