A Growing Number Of Realtors May Signal A Real Estate Bubble

[ghostParticipant]

https://seekingalpha.com/article/4121669-growing-number-realtors-may-signal-real-estate-bubble

This goes back to the conversation many of us were having on Zoom. This is an interesting signal and something we should all keep an eye on. Your market may vary as real estate is very localized, but the trend across the U.S. shows that we may have certain pockets where bubbles may be forming.

There are some cities which have been the beneficiary of quite a bit of overseas money (i.e. China) so the market is most likely inflated as a result. There are others which rely on a specific sector of our economy which happens to be doing well right now such as technology (i.e. Bay Area). Just some things to keep in mind.

I know the trend is similar in Canada, the UK and Australia.

[Anonymous 14]

I think some of those markets will not burst in the near future though because of Tech Industry on the rise. Seattle is booming right now, and I believe it will continue, if it pops it won’t be a huge pop. Same with the Bay Area. Silicon Valley is Google HQ. Unless there is an exodus, as many here including myself would like to see away from Google, the Bay Area will be fairly stable as well, maybe a small pop at some point. Other markets, I don’t know, it is all very dependent on what the job/industry is like in the specific areas as the Bankers get the money for free they lend out for profit so they like to lend it out willy nilly driving up prices as long as they think the jobs are there for the slaves to grind away at. Long term I would like to see FIAT money collapse completely, so I am always rooting for everything to come unhinged.

[xanthineParticipant 4903]

I think the market is also inflated due to the infinite quantitative easing and low interest rates the Fed has basically been stuck in since the last recession. Everything has been artificially propped up by those two factors. I wouldn’t be surprised if there is another real estate market crash, but i think student loan debt will be the next major bubble to burst. Either way it will be interesting to see what happens next…

Anyway thanks for the link, hope to see more topics like this.

[Anonymous 42]

Mine won’t sell and I stopped paying the taxes, f~~~ it! LTMFB! let the greedy motherf~~~ing municipalities drown in RED INK!

[ghostParticipant]

xanthine wrote:

infinite quantitative easing and low interest rates

Excellent points as well.

Anonymous wrote:

it is all very dependent on what the job/industry is like in the specific areas

To a large part, yes, but I think the Fed as Xanthine mentions, is also responsible for the big increase.

[FrostByteParticipant 19005]

A Growing Number Of Realtors May Signal A Real Estate Bubble

I think it is a signal that a bunch of woman are going, “o-s~~~ all the good men have left and now I need a job with no previous skills required”.

If you rescue a damsel in distress, all you will get is a distressed damsel.

[MarketWatcherParticipant]

xanthine wrote:

I think the market is also inflated due to the infinite quantitative easing and low interest rates the Fed has basically been stuck in since the last recession. Everything has been artificially propped up by those two factors

Agreed. As soon as rates rise prices will adjust.

xanthine wrote:

hope to see more topics like this.

Absolutely.

Good topic Gambit.

[ghostParticipant]

FrostByte wrote:

I think it is a signal that a bunch of woman are going, “o-s~~~ all the good men have left and now I need a job with no previous skills required”.

Yup.

[Anonymous 14]

When you think about it, when is really the best time to buy then? When the rates are low but the price is high as opposed to a smaller loan with much higher rates? I guess it would have a lot to do with the size of the loan and just how much the market has swung as well.

[ghostParticipant]

Anonymous wrote:

when is really the best time to buy then?

When no one is willing to lend, cash is scarce and everything is cheap.

Personally, I would be investing in cash right now. The opportunities will come.

[Anonymous 42]

DON’T INVEST A DIME IN AMERICA! F~~~ING RUN!

[ghostParticipant]

Anonymous wrote:

DON’T INVEST A DIME IN AMERICA! F~~~ING RUN!

The US is still the safest place to invest. It may not be the best time right now, but I would rather put my money in the US than any other country.

[Anonymous 14]

ghost wrote:

When no one is willing to lend, cash is scarce and everything is cheap.

Personally, I would be investing in cash right now. The opportunities will come.

That works if you have money, or if you are the Fed, as money is never scarce when it is created out of thin air. All of this s~~~ is a joke really, market manipulation, and trust me, empires have been and are being built with insider information.

And because of this the current system we live under is just a way to consolidate power/wealth as the guys at the top are the only ones who know when they will tighten and loosen the purse strings of lending. And those with money are the only ones able to buy up everything when the market pops. Designed instability for the sake of wealth consolidation.

[ghostParticipant]

Anonymous wrote:

money is never scarce when it is created out of thin air.

The Fed will not be able to endlessly print money in an inflationary market.

[Anonymous 42]

ghost wrote:

The US is still the safest place to invest. It may not be the best time right now, but I would rather put my money in the US than any other country.

Good, you can purchase the tax lean on my property then cash in on the ashes!

[Anonymous 14]

ghost wrote:

The Fed will not be able to endlessly print money in an inflationary market.

FIAT money by it’s very nature is constantly producing an Inflationary Market. They are only playing a game of tightening and loosening their grip which slows and increases the rate of Inflation. But I know what you mean, when THEY deem it to be too Inflationary. So as long as THEY LIVE most are f~~~ed, enjoy the decline because for most your wages will never keep up with the rate of Inflation, haven’t been since 71 when the coup de grace came in the from of detaching Gold from the Dollar completely.

[ghostParticipant]

Anonymous wrote:

Good, you can purchase the tax lean on my property then cash in on the ashes!

Is your tax lien greater than the value of your property? If not, then I am interested. I’d lease the property back to you as well and you can live there as long as you please.

[UntamedParticipant]

Anonymous wrote:

DON’T INVEST A DIME IN AMERICA! F~~~ING RUN!

LOL!!

Don't let them Blame, Shame or Tame you!
Give 'em NOTHING, not even an answer!
#GenderSegragationNow!

[narwhalParticipant]

Anonymous wrote:

When you think about it, when is really the best time to buy then? When the rates are low but the price is high as opposed to a smaller loan with much higher rates? I guess it would have a lot to do with the size of the loan and just how much the market has swung as well.

Of course, there are other factors besides rate and price, but all else being equal, I think I would prefer to buy when rates are falling. When rates are falling, the value of the home should go up faster. When rates are going down, fewer people are going to be buying, there will be more homes on the market, and therefore the value of the home will not rise.

You might even be able to make an argument that it’s smart to buy when rates are still high but projected to decrease, since refinancing is an option.

As far as a bubble, where I’m at in Texas, I do think we are going to be impacted with a lack of illegal immigrant workers, who often work in home construction. That will raise the cost of new construction, which will impact the price of existing homes. Rising rates will slow things down, but Texas will still be a good destination for people since we are a better destination than many other states.

Ok. Then do it.

[BeerParticipant 11832]

One thing I noticed with the last real estate crash was that property values around here dropped but rents didn’t. If you can mortgage a property and have a monthly P/I/T payment cheaper than renting…your area probably isn’t in a bubble big enough to care about.

Personally when the last bubble blew the value of my condo dropped below what I paid for it and I “lost” some equity, but I simply never cared because the alternative was shelling out more each month for rent and having no equity.

I look at real estate as either you buy a place to live to eventually pay off and have it be a rather cheap place to live, its not an “investment” you’ll make money off…its an “investment” that will lead to lower monthly expenses, or you buy properties to rent them out and hopefully turn a profit. The idea of buying a huge house because its going to appreciate never seemed to make sense to me as you end up losing all that appreciation in taxes and upkeep costs…and it seems like these people and flippers who got caught at a bad time were the ones who lost their pants in the last crash.

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