11/23/2015 – A down day with the Dow Jones down 33 points (-0.17%) and the Nasdaq down 2 point (-0.05%).
Today’s real estate news wasn’t very encouraging.
Weakest annual growth since about the January of this year. What is even more troubling is the fact that home sales put in a lower top, just below 2013 high. That suggests the top is in and the market is ready to accelerate down. Luckily, that shouldn’t come as a surprise to the readers of this blog.
I have now maintained for over two years that the real estate market is putting in a massive double top. Driven by the FED, zero interest rates, liquidity and speculation. That hasn’t changed. What I find interesting is the fact that we have reached a mental plateau where no one believes real estate prices can even go down.
That is a fallacy. They can and they will. Bellow you will find a number of real estate articles that I have published throughout 2015. My view hasn’t changed a bit. Enjoy.
The good news is, some people in the article above do have their heads screwed on right.
Hanson, often criticized for being a housing bear, points to the institutional and foreign buyers who have flooded the market since 2012, buying up distressed and lower-priced homes, as well as some new construction, all with cash. He calls it an exact replay of the last housing boom, “when unorthodox demand with unorthodox capital would pay any price it took to hit the bid. In short, end-users today are being handed a red-hot potato market already in a bubble larger than 2006.
And while some Americans might feel house rich for the time being, there is this gem to consider Most Americans have less than $1,000 in savings
As for yours truly, I continue to maintain the view that the US Housing Market is putting in a multi decade double top. And anyone who is buying a house today, will regret that decision a couple of years down the road. In fact, my analysis remains exactly the same…..
- Real Estate Collapse 2.0 Is Starting To Accelerate
- Last Hurrah? Foreigners & Hedge Funds Buy Real Estate In Bulk
- Did Blackstone Just Ring The Bell At The Real Estate Bounce Top?
The only hope homeowners have at this stage is the FED going into a full out “Monetization” mode. And while that will create a whole set of terrible economic problems, at least mortgages will be monetized and/or inflated away. At the same time, I wouldn’t bet on it. 