Housing Bubble is bursting

In fact, home prices are skyrocketing. Much of that is due to huge corporations buying up single-family homes, rehabbing them and renting them out. Corporations own many thousands of homes. That makes it so if you want to sell your house, you can get a cash offer in 24 hours.
No, it is not the government. it is corporate control and greed.
 
T. A. Gardner said:
Part of the problem currently is the market is being skewed by government policy. The Biden administration is subsidizing and pushing builders to put up apartments and "affordable housing." This has created a massive shortage in new single-family home construction.


https://www.usatoday.com/in-depth/n...-would-curb-single-family-housing/7097434002/


https://www.washingtonexaminer.com/news/biden-squeezing-suburbs-existence-zoning-laws

The result of this is a massive shortage of single-family homes in many parts of the country. Here in Phoenix there's roughly a 25,000 unit shortage right now of these. That makes the ones that are available rise quickly in price as buyers get into bidding wars and such over those on the market. At the same time, apartments aren't renting all that well so many units are empty. This has forced landlords to raise rent on those renters they do have to cover the carrying costs of the empty apartments.

This is the sort of stupid shit that always happens when the government tries to control the direct of the market rather than let the market decide its own direction.
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Housing is largely a state and local issue, not the federal gov't. If Phoenix has a shortage of housing it's not because of the federal gov't. In many of the most expensive places in the country there's not much available land left. They aren't lacking single family homes they are lacking more affordable options like duplexes or triplexes. A huge reason we have the pricing affordability issues we do is because of single family only zoning and NIMBYs who prevent development in their areas.

And I can't say I've ever really heard of LL's raising rates because they have too much vacancy. With higher vacancies you generally lower rates to attract tenants. With higher vacancies you have more competition.

Every area is unique and different of course but generally speaking we have a growing population and we don't allow supply of housing to keep up. Housing laws need to be liberalized and all levels of housing from single family to multi-family needs to be built. The lack of housing is holding back economic growth in this country and punishing younger people.
 
Hawkeye10 said:
All the experts I have seen say that the the inevitable crash is near. I am not going to sell, I need to live somewhere, and over a decade ago I decided to die on this house, which is why I built it into an oasis, which I now rarely leave. I never said anything about me selling, you imagined that.
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What experts?



You didn’t believe the experts last time
 
For two years we have not been building new housing at the rate we usually do


Plain and simple folks


The pandemic slowed building and building supplies


How stupid can these cons get
 
Nordberg said:
In fact, home prices are skyrocketing. Much of that is due to huge corporations buying up single-family homes, rehabbing them and renting them out. Corporations own many thousands of homes. That makes it so if you want to sell your house, you can get a cash offer in 24 hours.
No, it is not the government. it is corporate control and greed.
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If someone reading this didn't know better they might buy what you are saying. But for those who have an understanding of housing know how far off you are.

For starters, the Fed is a huge driver behind the current state of housing with their low interests rates for the past decade. Maybe you argue they aren't part of the gov't but most would say they are. Secondly, it is ultimately the gov't that sets housing policy and blocks new housing and development in so many markets across the country. California, for example, has underbuilt housing for decades. Yes NIMBYs are the big driver behind that but ultimately it's the gov't implementing and backing the policy.

We can go waaaay deeper into the weeds here but corporations buying housing is negligible in terms of our housing crisis. But to the uninformed it makes a great scapegoat and would probably get a lot of likes on Twitter.
 
Hawkeye10 said:
The Dallas Fed just two days ago issued a warning,...stop lying.

https://www.dallasfed.org/research/economics/2022/0329
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Stop lying? Did you read your own article?

These are the last two paragraphs:

""Based on present evidence, there is no expectation that fallout from a housing correction would be comparable to the 2007–09 Global Financial Crisis in terms of magnitude or macroeconomic gravity. Among other things, household balance sheets appear in better shape, and excessive borrowing doesn’t appear to be fueling the housing market boom.

Importantly, experience from the housing bubble in the early 2000s and the subsequent development of advanced tools for early detection and deployment of warning indicators—some illustrated in this analysis—mean that market participants, banks, policymakers and regulators are all better equipped to assess in real time the significance of a housing boom. Thus, they are in a more-informed position to react quickly and avoid the most severe, negative consequences of a housing correction.""


Housing bubble? Yes. Bust and sell your house today? No.

Read your own stuff man before accusing others of lying.
 
cawacko said:
Housing is largely a state and local issue, not the federal gov't. If Phoenix has a shortage of housing it's not because of the federal gov't. In many of the most expensive places in the country there's not much available land left. They aren't lacking single family homes they are lacking more affordable options like duplexes or triplexes. A huge reason we have the pricing affordability issues we do is because of single family only zoning and NIMBYs who prevent development in their areas.

And I can't say I've ever really heard of LL's raising rates because they have too much vacancy. With higher vacancies you generally lower rates to attract tenants. With higher vacancies you have more competition.

Every area is unique and different of course but generally speaking we have a growing population and we don't allow supply of housing to keep up. Housing laws need to be liberalized and all levels of housing from single family to multi-family needs to be built. The lack of housing is holding back economic growth in this country and punishing younger people.
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Wrong. The federal government is a big source of underwriting mortgages, HUD policy and federal grants and subsidies play a big role too.

U.S. Housing Market Is Nearly 4 Million Homes Short of Buyer Demand
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https://www.wsj.com/articles/u-s-ho...llion-homes-short-of-buyer-demand-11618484400

https://www.whitehouse.gov/briefing...-steps-to-increase-affordable-housing-supply/

The plan would invest $213 billion toward building, renovating and retrofitting more than two million homes and housing units.
Biden is calling on Congress to produce, preserve and retrofit more than a million affordable and energy efficient housing units. The plan would also build and rehabilitate more than 500,000 homes for low- and middle-income homebuyers.
The proposal would eliminate exclusionary zoning laws, which the White House says inflates housing and construction costs. Biden is calling on Congress to enact a new grant program that awards flexible funding to jurisdictions that take steps to eliminate barriers to creating affordable housing.
Homes would be upgraded though block grant programs, extending and expanding home and commercial efficiency tax credits and through the Weatherization Assistance Program.
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https://www.cnn.com/2021/03/31/politics/infrastructure-proposal-biden-explainer/index.html

How is the Biden Administration Increasing the Affordable Housing Stock?
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https://www.nmhc.org/news/nmhc-news...tion-increasing-the-affordable-housing-stock/

"Affordable housing" is really multi-family housing and apartments. One of the big pushes from this administration is to subsidize 2 to 4 unit apartment complexes in urban lots rezoned from single-family housing. The federal government is dumping tens of billions into this program.
 
cawacko said:
Eh, that's a stretch (imo). Higher rates will definitely put downward pressure on the market and we will likely see a slowdown in the increase of values but that's very different than a crash. The demand is so strong right now that even with some buyers now being priced out it won't turn the market downwards (at least not in the near term).

Every market is different so its hard to make a general statement like "you need to sell now" without knowing the drivers in each area. You sell now and sit on the sidelines and you could find yourself unable to afford to get back in.
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the demand is already declining with the increase in rates.
 
Hawkeye10 said:
The goal is to have no bubbles, bubbles always are net pain because they always pop, but the American economy has long been shit, we not only dont prevent bubbles we actually encourage them.

Welcome to the cost of idiocy.
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Wall Street requires bubbles. Its stupid but its a cycle of their own design.
 
Althea said:
You are a fool.

The housing bubble exploded when people started fleeing cities during Covid. In NY, it was CRAZY. When the trump virus ravaged NYC, everyone purchased homes in the mountains for ANY price. It was amazing for people who were selling. They walked away with a windfall.

Thankfully, Biden got the trump virus under control...save for a few Communist Red states...and people are returning to the cities.
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thats hilarious
 
Celticguy said:
Due to Fed rate rising of course, had to happen eventually. Those 2-3% rates are nudging up to 4-5% already and will climb from there till market prices "correct".

So...

If you were thinking about selling, DO IT RIGHT F*CKING NOW. Then RENT till the market bottoms out, you will need tp as borrowing rates are going to drive that monthly payment up so you need to get the prices low to easy that bite.

If you were thinking about buying, WAIT till the market bottoms out.

But you may want to hold off doing anything to see if you need to relocate for employment due to the recession (or worse).

The Piper was going to have to be paid eventually. Welcome to eventually.
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What is tp? I'm guessing not TP for my bunghole.
 
cawacko said:
What experts are reading/hearing that are saying a crash is near?
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I'm no expert, but the situation right now is very similar to 1928-29.

Along with high fuel prices and fertilizer and fuel shortages.

You remember the "preppers" waiting for "SHTF"? SHTF is coming shortly.
 
Matt Dillon said:
I don't think it's bursting yet..but soon.
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OP is bullshit. If anything, there would be a mad rush to obtain financing before rates go up.

With raw materials 400% higher than they should be, only the wealthy are building.

Existing homes have mostly disappeared during the trump virus bubble.
 
Celticguy said:
the demand is already declining with the increase in rates.
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Where? I've not seen it in the markets I follow. And in many of these markets where you'll have a dozen bids on a property dropping to say a half dozen bids is technically a drop in demand but that's not tanking the market.
 
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