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/biz/ - Business & Finance

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12573233 No.12573233 [Reply] [Original]

Homes are becoming increasingly more expensive. Many properties have doubled and tripled in value since the 2008 housing market crash. If inflation is only 2% and houses have doubled or tripled in value since 2008, wouldn’t the market crash again? Also, the median income is around the same. Did we just create another bubble within a bubble to sustain the “growth” in the economy?
I’m a brainlet so help me understand

>> No.12573263
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12573263

credit became cheap. assets got run up by everyone buying property on cheap credit. people who lived through it were suddenly able to refinance for higher value (equity pull out), everyone went into debt outbidding each other during real estate speculation. most people are fucked now because they cant refinance and prices are stalling. therefore we are heading to a correction. how severe that depends on how much shit piles up on top of it.

>> No.12573394

>>12573263
So, I should by SPY puts far out in 2020-2022?

>> No.12573405

>>12573263
what coin do you hold?

>> No.12573434

>>12573263

>> No.12573437

>>12573233
The banks are keeping lots of supply off the market

>> No.12573439

>>12573233
The Fed owns trillions in mortgage backed securities. The govt. will keep propping up the housing market for as long as they can. A large portion of most homeowners net worth are locked up in their houses. We would descend into chaos if the housing market had a sustained crash

>> No.12573445
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12573445

>>12573405
>coin
what baseball cards do you hold sport

>> No.12573450

>>12573439
https://fred.stlouisfed.org/series/MBST

>> No.12573453

>>12573445
>Not going all-in on pogs
My alf pogs will definitely moon in 2038

>> No.12573494

>>12573439
they need to reduce regulations on site planning, and start building homes like they were doing early to mid '00s.

Since 2008, all of that shit came to a screeching halt, and gave oppurtunity to the same baby boomers to buy everything back up for cheap, while millennials were coming of age, but couldn't find a job to start their professions along with major student loan debt.

Now that they have jobs, they still have debt, but now inherited a housing market where baby boomers already scooped everything back up, and are now selling it back to their kids for one last final ass fucking to the wonderful slave-to-rent program.

The millennial that are buying during low inventory and offering up to $30k above list and skipping inspections, will then be in a world of hurt once the market comes back down.

Your best bet right now is CASH. Start hording cash like fucking crazy. By 2025, that real estate market will come back down even harder.