Beware the Popping of the Housing Bubble

[Kamaji]

Beware the Popping of the Housing Bubble

Stephen Moore
May 10, 2022

Washington never learns. Never. Politicians are like collective Alzheimer's disease patients. They have no short-term memories.

Does anyone remember 2008? It was only 14 years ago. Then, America suffered through one of the most significant and most painful financial crises in our nation's history -- and the worst losses since the crash of 1929. Millions of people lost their jobs. Hundreds of thousands defaulted on their mortgages and lost their homes.

Trillions of dollars of lifetime savings and wealth evaporated. Central billion-dollar banks and investment houses that were thought to be invincible were swept away like straw huts in the face of a tsunami.

The calamity resulted from government policies that intentionally inflated a housing bubble year after year. Few saw the bursting of the bubble coming. When it popped, the carnage was everywhere and felt from coast to coast.

Now there are many of the same flashing signs of a housing bubble -- and again, no one is paying attention.

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Source:  https://townhall.com/columnists/stephenmoore/2022/05/10/beware-the-popping-of-the-housing-bubble-n2606973

[DefiantMassRINO]

They'll repeat the mistakes of 2008, especially the special mortgage programs to help more people afford to buy a house or condo.

Rather than giving mortgages to people who can't really afford them, build more houses, condos, and apartments to lower prices for everybody.

There are (2) sides of inflation - demand, supply.

Higher interest rates, in theory, will help reduce demand.  What is being done to increase supply?

[GtHawk]

Prices have gone insane here in Huntington Beach, CA. From Zillow:
The typical home value of homes in Huntington Beach is $1,234,619. This value is seasonally adjusted and only includes the middle price tier of homes. Huntington Beach home values have gone up 25.9% over the past year.

The home I had to ...relinquish before the bastards at Fargo took it seven years ago is appraised at 350K more than what I sold it for. It's not a big home 3 Bdrm but the lot compared to newer homes was larger(it's SoCal remember) 7200 sqft.

My daughter and SIL are wanting to move back here to H.B but like the Zillow report shows average homes are at 1.25 mil and get bid up insanely by cash offers. Maybe if the market 'adjusts' they will be able to buy near us.

[Fishrrman]

It IS time for the housing bubble to burst, and for prices to get down -- WAY DOWN -- and back to where they belong.

I'd like to see at least a 50% crash in value, everywhere.
60-65% would be better.

Then... let the chips fall where they may.

I reckon that would take inflation down a good notch or two...

[catfish1957]

Implosion inevitable when interest rates rise, and I am guessing a couple of hundred basis points. Plus or minus.

The huge influx the past few years of building public housing was not an accident.  The next real estate crash will make '08 look harmless.

Too bad I got out of the rental business, because there might be some opportunites there in a few years for those who have the stomach for it.  OTOH, if it extends to farm land, I will signiicantly  expand my portfolio there.

[DCPatriot]

If the federal government can 'convince' mortgage lenders to allow existing loans to be ASSUMED with qualification, the 'Bubble' is harmless.

[Fishrrman]

Housing of the future (agenda 21) -- no "bubbles" here!

(this is Shanghai)

[rustynail]

Housing of the future (agenda 21) -- no "bubbles" here!

(this is Shanghai)

Looks like a nice place if you like to pee off the porch.

[GtHawk]

Housing of the future (agenda 21) -- no "bubbles" here!

(this is Shanghai)

Pshaw, they have been putting monstrosities like that, grant you shorter but just as fuggly, all over SoCal. My SIL has supervised framing and drywall crews on two 20 story buildings already and now is working on a third.