Housing Market Update

It’s not all about housing prices. It’s more about devaluation of purchasing power deliberately caused by the central banks counterfeiting the fiat currency.

The reality is most of these “ prognosticators” have a vested interest in keeping the money train rolling. Saw the same thing in 07 and 08….” buy now before you can’t afford to” right before it all fell apart and people’s homes were worth half what they paid for them!

Housing Market Update

There are many knowledgeable and experienced individuals who advise against buying a home and just as many who advise for buying a home. No one person is the end all be all when it comes to what is best for YOU or YOUR situation or YOUR goals. Take it all in, do your research, weigh YOUR pros and cons with the info you gain and make YOUR OWN decision. We gotta get away from hanging all of our decisions and opinions on ONE perspective.

Housing markets around the globe are bloated. It’s a bubble people, plain and simple. Does that mean it can’t get to be more bubbly, well, no. Bubbles end when they burst. We don’t know in advance when that is but we can be reasonably confident when we are in a bubble, and that it will not last.

Just like the real estate industry back in 2006-2007 saying all is good and then boom — 30-50% losses!? With unemployment hovering around 8% and growing and 200,000 businesses never to reopen along with the soon ending of the mortgage and eviction moratorium!? The piper must be paid lol! And also now with vaccines that will give confidence to sellers to list there properties, the market will go from no inventory to over supply and I think we all know what that will do!

Consider the following: (And sure, not for everybody): a. People buy more expensive homes due to demand being greater than supply, and people might be spending more than they originally wanted to. b. Economic inflation is most probably still going to increase, some say drastically increase due to various issues. c. Taxes and insurance on those homes will also go up. d. Very little if any margin for error in some people’s finances. One high medical bill, one high car repair or replacement bill, one lost job due to whatever reason, and many people are going to go under. (And let’s not forget the rent and mortgage moratoriums that will be expiring as well. Many might become homeless real quick). e. The number of bankruptcies will probably go up, and people’s credit score will go down, with all the economic effects of those items as well.

My own opinion is that there will NOT be Housing crash 2021! The timelines for delinquency, notice of default, and final foreclosure, do not fit into 2021. Now, 2022 is a completely different matter.