Housing Bubble 2.0 By Gregory Mannarino

marketreport (74)in #money • 7 years ago (edited)

Moody’s investors service report: Declining home affordability is a major driver for the current softening in the US home building industry. TRANSLATION- Easy money/suppressed rates have inflated another housing bubble...

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7 years ago in #money by marketreport (74)

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builderofcastles (65) 7 years ago

Oh no! Where are they going to get more buyers, to buy the more homes, so that more mortgages can be created with more money into the banks?

Comparing this housing bubble to the last one... doesn't seem the same to me. There are a lot of things different this time, that will make the outcome... the housing market will never be the same.

Grand Solar Minimum - Get ready for month long ice storms in the north. (or, if you have a house where it normally gets weak long snow storms, sell this summer)
People leaving cities - Cities were where jobs where. Now, we will see a lot of robotization across all fields. Add to this, work from anywhere (so we don't have to have an office) and lots of people will move to small towns, where their dollar will stretch further.
Bitcoin to the moon! There will be a group of people who will just buy houses outright with money that, literally, wasn't there last year. No mortgages
Boomers are dying / moving to retirement homes. And the housing market is about to see a shit-ton of inventory.
As the temperatures get colder in the winter and gas prices continue to climb, houses that are extremely well insulated and allow for passive solar heating will be high in demand. Buying an old, poorly insulated box, will cost you more in energy than you saved on the price.
*Shifting coast lines.

All of these things will add up to a market that will not just pop, but fall over, burn to the ground and die.

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