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
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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.
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That was really good.
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Me likey !!!
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Great poem my friend, we just need some more people who can understand the message in it, cheers.
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Ayeeeeeeee #lit
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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.
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So is it time to sell or buy? Are prices coming down? How about mortgage rates?
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It is currently a sellers market in most cases since we are in the bubble but if you have the option you should try to get your house sold now at high prices and if you can rentfor cheap and then rebuy when the bubble pops. This is extremely hard for most people to pull off but just know that when the bubble pops your house will be worth the average of what every other house with the same BR and BA in your area but also you will be able to buy homes at lower prices so in effect there is no huge net loss if selling and rebuying. The issue will be you will be paying a mortgage on a home that is not valued at what you bought it for so if you have a high rate try to get it lower asap. When the bubble pops it will be a buyers market as the cause will be the credit bubble. In that scenario many people will be forced to sell their homes at increasingly lower prices to get out of their mortgages and you will see many short sales (pre-foreclosures) and foreclosures as people lose income and simply stop paying their mortgages. Why pay $2,000/mo for a home worth less than $200k? This won't affect all people but it will also make the rental market go up, way up, as people look to rent instead of buy, as the credit bubble will make getting a loan more difficult especially as people are losing work. So if you have a home with an apartment to rent you will be in a good position which is what I am looking to do. Passive income is always a great thing especially if you can find a reliable tenant that will pay their rent every month. That will help you pay your mortgage during the best and worst of times. Basically it will be a repeat if not worse of '07/'08 but with the added risk of the USD losing buying power and a risk of hyperinflation so everyone should think about putting money ($USD) into something else that will go up as the Dollar goes down such as Gokd and Silver (my choice), and crypto which will go up inverse to the dollar. Silver is a great buy and has risen recently. Gold still has potential. Bitcoin can go a lot higher especially if the dollar collapses and people in the USA are using it more as a means to save their assets. Buy Gold and Silver now while they are still cheap. In a USD decline you can see Gold go up to $5,000/oz and I can envision Silver at ~$200/oz which is 10X prices now. If you have an extra $10k in a retirement account you may want to take the penalty and get your hands on some metals especially if goes up to $100k. But right now house prices are high, too high as there are less homes being sold and demand drives prices. In my opinion the revaluation of homes being worth what they were pre-2007 was a con on the public to make them feel like the recession didn't hurt long term just as I believe the stock market and retirement accounts have likewise rebounded but if the USD loses its buying power and we see hyperinflation or any meaningful inflationary pattern prices will actually go up but your dollar will be worth a lot less meaning hopefully everything you own is not dollar bills. That is why I stack silver ounces and have gold and cryptocurrency. Bitcoin especially will do well and Silver and I think STEEM too is a great buy right now as I think if this scenario happens people will look to decentralized everything and DTube, Steemit and cryptocurrencies will be a popular alternative to the mainstream central banks, central internet and central news sources. It could be a paradigm shift so ready yourself for the storm.
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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
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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. :-)
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You should have a look at the Australian housing bubble, it's out of control my friend, cheers and thanks Greg.
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thank you Greg for all that you do and we upoted and re steem
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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.
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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.
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It seems we never learn.
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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/
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Yup, you are so right. I can't wait till this market blows up!
Thanks for the post.
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If there is a meltdown will people want to cash in and buy something more tangible, like land? Gold and silver we already know about but land with property is something real. If you got all that bread already might as well do something with and get something real. I think that's why they call it real eatate, ha... " land, they ain't making any more of it."
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Interesting! Nice! I upvoted you!
PD: join me in this world of steemit looking my posts, rare content about this world, maybe you like it, maybe not, anyways, We can grow up toghether follow me and I follow you bro! :D Isn't it a good idea to grow
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thanks for the update
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wawwwoooooooo.......it loock nice
I am your follower thank you to vote on my commendary thank you
@ bakabou159704
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My little craft retail update...I am selling tons of small (under 20.00) items in the states, it is like the holiday season came early. And sterling jewelry sales are up...
Most sales of items over 40.00 have been international.
These low sales are not impulse buys...they are plan buys, like 6 charms to one customer. 3 charm holders to another. These are future gifts...which makes me think people are expecting prices to go up by next month. Or they are buying now in fear all retail will vanish...
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Retail vanish... eek Need to get me a couple years worth of toilet paper, tissues, tooth brushes w / paste.... what else??? I need a list... :-)
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haha, yeah a list is a good idea :)
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new sales home best choices
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Agreed 100% Greg; bubble it is.
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The FED printing press wont stop anytime soon.
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This price bubble appears to be regionally skewed. Local prices in Oklahoma do not seem extravagant.
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This post has been ranked within the top 80 most undervalued posts in the second half of Aug 23. We estimate that this post is undervalued by $12.59 as compared to a scenario in which every voter had an equal say.
See the full rankings and details in The Daily Tribune: Aug 23 - Part II. You can also read about some of our methodology, data analysis and technical details in our initial post.
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Hello, I'm new to steemit. Very good article. Can you give me your vote?
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Great Post
thank you
upvote
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It always corrects to fair value sooner or later.
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Time to cash up and get ready for buying opportunities.
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Sir Sooper amazing please sir one request me follow you so you follow me
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Good points about bubble. I thought bubblews.
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good to know!
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Housing market is out of control, but what's even worse is student loans. That's the worst bubble that has yet to pop because of government regulation
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Not too much of a surprise there. I've had a position on for a while, that has obviously been struggling, because it's really just a matter of time.
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To me this means I have a better chance of buying!!! California prices are through the roof. Even just renting! It's ridiculous...
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I am a licensed realtor in Georgia. Is this nationwide or a specific state you pulled this research from? Our supply is not growing here. In an average market supply is around 6 to 9 months and in Georgia we are less than three months of inventory . The number of days a home is on the market has decreased and if you look at it of prices before the last bubble and factor in inflation many experts believe we are not in a bubble at all we have just recovered from the last bus.
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easymoney here - I guess its a great time to rent before the markets crash again. No point in buying because one will lose the equity in the home upon the crash and you could have waited. The problem is that we don't know totally when it will hit the bottom so I guess we have to wait and see. Great Post Gregory!
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I'd be willing to sell my home for a Trillion $ Really, I would!!!!! :-)
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Bubble.
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very good article.....
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Your post is promoted. Promotions make SBD & STEEM stronger.
Your reward is an upvote and 3.16 SBD extra promotion.
Good job, see you next time in
Promoted! ;)#steam4steem
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Monthly renko bars are not hinting at a home price decline. Now I am not implying other areas in the US have a bubble that´s popped. But the over all big down move usually will show up on renko bars first. https://www.tradingview.com/x/26nCXrjH/
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