According to CNBC, real estate is almost back to normal Housing is about 75% back to normal. My response is……keep dreaming. Those who participate in financial markets very well know that nothing moves up or down in a straight line. Meaning, what we are witnessing today in real estate is an intermediate top and a roll over into a 3rd leg down. The same leg down we saw in the stock market between 2007-2009. Consider the real news.
-
Who needs a mortgage? Mortgage applications running near multi-decade lows while mortgage rates fall.
-
Where did the real estate agents go? California has lost nearly 90,000 active real estate agents since 2008.
In the early October of 2013 I came out with a startling forecast. At that time I have suggested that the “Dead Cat Bounce” in the real estate market from 2010 bottom was now over and that the real estate market was about to embark on a massive leg down. Again, not that dissimilar to what had happened in the stock market between 2007-2009 (mid cycle panic). I have also suggested that while it will be hard to see initially because all real estate is local, by the time we get to 2015, the upcoming real estate disaster should be evident to everyone. (you can search the blog from October of 2013 to verify this)
Well, now it is Case-Shiller Home Prices Tumble Most Since Dec 2011, Miss 2nd Month In A Row
When I first forecasted this mid cycle panic in real estate most market participants have assumed that I was on some sort of cocaine binge or have simply gone insane. A typical reaction. Yet, if you are interested in learning what will happen in the real estate market I highly recommend my report Real Estate Collapse 2.0 Why, How & When What happens next will make the 2006-2010 decline in real estate prices look like a joke.
