New Home Sales Plunge, Supply Grows. Can You Say Bubble? By Gregory Mannarino
Here we go again.
If you know my work, I have been sounding the alarm regarding a massive bubble in the price of housing for at least a year.
Today it is being reported that new home sales missed the mark big time, plunging nearly 10% in the month of July meanwhile supply is growing.
Along with the massive bubble existing in housing, US consumer debt is at an all time record high and growing-does any of this sound familiar to you?
It should.
During the housing meltdown of 2008 which rocked the global markets, we were in a very similar situation, although the mainstream media will tell you this time is different.
Throughout history every single time there exists a financial or economic bubble the mainstream pundits and frankly those who just don't want to see what's right in front of their faces will tell you "this time is different."
Here is a nice fact for you: it is never different...
Time and time again history has shown that distortions across the financial markets go virtually dismissed by the mainstream media and every single time they end horribly.
Mark my words, housing is in a massive bubble-act accordingly.
Gregory Mannarino @marketreport
I have been singing this same tune for over a year now. My parents sold their home a year ago and thankfully landed a great value home in Bayport, NY that cost them $325k and after $60k in renovations appraiser at $700k while selling their old home for $225k and they both have pensions, 401k, multiple IRA's, are debt free and almost $1.5m liquid. I have been begging them to get some of their retirement money out of the stock market for awhile to diversify into Silver, Gold and some crypto but they won't budge. Also I was to purchase a home this Summer for $250k and passed as I saw the market flush with homes that were increasingly on the market for over a month, over 3 months and some over 6 and even 12 months which has led me to believe that over the next 6-9 months the housing bubble will pop and I will be able to get a much bigger house in a better neighborhood for that same $250k, maybe less. I have a very secure job in healthcare, as does my wife, and we are debt free. I also am a "silver stacker" and obviously dabble in crypto, owning BTC, Bitcoin Cash, Ether and STEEM and plan to buy a lot more non-USD "currency alt's" over the next 4-6 months especially Silver, Gold, STEEM, BTC and Ether, probably dumping in a good $1,700, $2,500, $500, $2,000 and $3,000 respectively. I figure as the USD goes down all of these alternatives will go up and timing it right I can sell most of them off, say 50% of holdings and try to scoop a home at 30%+ off while taking continued gains in the crypto and PM market. Thanks always to your information and insight and I have consumed so much from you that I now think like you which is a very good thing. Can't wait to post pics of my new home in early/mid 2018 after this credit bubble and housing bubble make my first home my dream home, and gaining a lot of future equity in the process. ~Always faithful, @wwamd
Bubbles burst.
Markets decline.
This script we've rehearsed
It's a matter of time.
the Fed Manipulates
Folks are in debt
This bubble will burst
I'd wager the bet.
Mark my words
Greg is so right
This time around
It's really gonna bite.
So to crypto my friend
and to silver and gold
Cuss all bubbles burst
You have been told.
That was really good.
Me likey !!!
Great poem my friend, we just need some more people who can understand the message in it, cheers.
Ayeeeeeeee #lit
Couldn't agree more man. We considered putting our house on the market about 6 months ago b/c of this. Prices are so ridiculously high we thought of selling and downsizing a bit and just investing the profits. The only difference between this time and 2008 is everything is in a bubble now.
I am been through many up and downs, since I have been in real estate for over 40 years. the prices are sky high here in Florida, but no problems to date on Mortgage companies, yet I see another problem that might cause a meltdown, student loan defaults. Now following and have upvoted you
Kinda sux what Blackrock and other Wall St entities did in the period betwixt 2009 and 2012 in purrtickler. I remember thinking in late 2009 that housing prices are actually getting close enough to make sense to actually buy up here in north central Fla. 3 years later I'm seeing multile homes owned by what are "obviously" arms of Wall St crooks like Blackrock showing up on the local Tax assessor's website. Seeing prices paid of like $35K for homes that are even now being "tried to be sold" for $100K+, as the ave home is now selling for closer to $120K last time I checked. So what did the Wall St sheisters do with all of that housing stock? Why they raised rents of course...leading to the recent boom in multi family construction. I agree with Greg on this one. Noooo waaaay you can hide the "real" price of a "discounted" home...the "real" market always gets to the right level. So here's "hoping" Blackrock is unable to liquidate it's portfolio of real estate holdings...and that things get bad enough that their renters just trash the place they are renting from Blackrock. karma sux. You are about to get slow in the real estate market. In the end you would be better off becoming the landlord instead of selling the home to the landlord. Just start stacking those dollars. I don't agree with Greg on the dollar. 90% of all homes in America going to lose 50% of current value...and the dollar going to become worthless? That's $trillions of dollars eliminated from the system in just housing alone! Wait till you see what I do the FANG's. Greg will see it my way but in order to see it he actually has to see it...becuz that's how Greg rolls. :-)
You should have a look at the Australian housing bubble, it's out of control my friend, cheers and thanks Greg.
thank you Greg for all that you do and we upoted and re steem
Bubble bubbles everywhere.
Check out the advertising bubble. Poor WPP, their stock plummeted today. I wonder if Martin Sorrell will still get his £70 million paycheck this year. What a joke.
If the fed does reduce the balance sheet, that's going to be more significant than raising the interest rates by 0.25%. I'm surprised the markets have been this complacent till now.
It seems we never learn.
Look at the DC Housing Price Index. In the last housing bubble, home prices in DC topped out in 2006 where 2007 & 2008 were making lower highs. DC is usually the last to go into a recession and the first to leave. DC home prices have not topped out with home prices making lower highs .
https://www.tradingview.com/x/ewOkvkxw/