Real Estate Warning
If the stimulus stops and the interest rates adjust for inflation, the stock market and the real estate market will both get hit hard for sure. We are deep into a stimulus driven economy.
it’s sooooo bad for the economy overall, and its not fair to young people starting out that have saved for a down payment. I understand they don’t want another housing bust, because housing feeds many industries – it feeds the trades-plumbers electricians etc, home improvement stores, building supply manufactures, etc. However, it seems that people have sprang right into travelling and spending money like before the Pandemic, so personally I feel they need to raise interest rates at least some, to reel in the consumer, and add some inventory to the housing market to slow down the price accelerations. A modern day epidemic of this magnitude has never been experienced – so economists just don’t know how to handle the fall-out.
Real Estate Warning
Interest rates will increase after they speed up inflating the debt away. Pension funds are now getting money from the Fed as they are under capitalized and would be broke if the Fed wasn’t giving them billions every month. When did we authorize the Fed to give foreign countries 10’s of billions and not even tell who was getting it and now the pension funds are getting billions every month. This is a complete scam everything we thought was real is being inflated.
Does anyone remember the term “Strategic Foreclosures”, where homeowner/investors purposely walked away from their “signed commitments”, because the home/investment was worth less than the debt owned on it, when they could afford to pay for it. Those were the people that substantially added to the last housing bust, and I am convinced it MAY happen again, because they live in the home for an extended period of time due to the backlog in the court system, and then rented for 3 years, cleaned up their credit and rebought. There should have been stiffer penalties for those that purposely signed contracts and then just walked from their commitments. Funny thing, is that people “expect” Real Estate to constantly appreciate, but, all things run in cycles, and it looks like real estate is about to take a huge down cycle!
Many people are taking advantage of the eviction halt and not paying when they’re are completely capable of. In addition many are taking unemployment checks where they’re not even applying to jobs! Let the market correct itself. Every time the government helps out(even with good intentions) it only makes matters worse!
*******************
www.brokerforyou.com *** This 21 year old San Diego real estate is for sale! Also, aged real estate sites in many California cities are for sale.
Over 20,000 unique visits in April 2021
++++++++++++++++++++++++++
Visit our Youtube San Diego real estate channel
