You can do back of the envelope calculations and confirm this. There's no way "fundamentals" alone are responsible for the increase in housing prices because wages and demand among first time buyers isn't high-enough.
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***Official Real Estate Thread***
- Thread starter One-Off
- Start date
Everyone always assumes they will have their jobs and high salary when the recession hits.
Word.
In Shelter Cove, Cultures Collide on Either End of a Disputed Coastal Trail
Buy that Lost Coast bit, then fkn use the airstrip to fly in a bunch of wolves encroaching on people's livestock in Wydaho.
When you see a key for a late 90s/early 00s car with a known-for-reliability Japanese mfr logo on it in a pile of wolf sh!t next to a Sharp Eye, post the Casa Mugrienta: Done thread on the erBB.
When you see a key for a late 90s/early 00s car with a known-for-reliability Japanese mfr logo on it in a pile of wolf sh!t next to a Sharp Eye, post the Casa Mugrienta: Done thread on the erBB.
What is FUD about what he said?
You seem to shout FUD at any negative statement regarding the economy.
On second thought, I think I was south of there, closer to Point Arena.
How is the reality of an economic slow down the same thing as FUD?
Fear, uncertainty, doubt. It hits all of those marks. Something can be FUD and still be true. Plenty of people kept their jobs and pay during the last downturn.
And you seem to jump and cheer every time there is negative news in any financial sector that confirms your bias. Eventually people like you will be right- but how much money will you have left on the sidelines parking it in cash for so many years
Because you say it with a tone that suggests that everyone will take a bath on all of their income and investments and end up borderline homeless. Most of us will do just fine in the short and long run.
He's said nothing like that.
Based on what data?
"Stock market always goes up" isn't an answer btw
25% of the workforce was unemployed during The Depression.
That means 75% of the workforce was employed. So most people had jobs.
I didn't think the post was full FUD per se, but some posters, and I'm not saying Masa Kugrienta's name here or anything, thought 2008 was what happens when I surf two drift sessions without Under Armour on and that this would be "a bloodbath".
This is a real estate thread. Real estate is even more consistent in upward trending over time, especially in desirable markets. There will always be contractions in the luxury and low end of the market during a downturn, but the median bread n butter 2-4 bedroom SFHs will do just fine.
You guys keep forgetting the supply issue- supply and demand still rules the roost at the end of the day. Low inventory, rents are rising, and we all need a place to live.
This really depends on the time-scale. Bring data or this is just your doctrine.
That depends on how long this financial manipulations continues. In the Aughts, the financial manipulation was making a lot of bad loans then bundling them as CDS and selling them to greater fools who bought them under dubious assumptions that turned out to be false.
The inventory is low because large banks are now manipulating the market by paying well over ask. Perhaps this can keep up indefinitely because the Fed has a money printer, it just won't continue at a price most people can afford. If the banks are now going to own our housing forever, then you are correct, but it won't be a country we want to live in.
If I'm not mistaken housing only deviated massively from the CPI over the past 20-30 years.
Now factor in what will have to happen to interest rates to get control over inflation (hint: we're still way too low) and look at the macroeconomic situation of the United States (needs to default to get a handle on things). Values could easily take a pretty big hit.