2 Cool Fishing Forum banner

Mortgage Bubble

5K views 9 replies 5 participants last post by  Its Catchy 
#1 ·
#2 ·
IMO, we have another one going full blast right now. In a 1 mile square area around my home, there are currently over 1000 homes being built in the $450/500 thousand range and selling as fast as they are ready. Are these buyers paying 20 % down, I doubt it. Who will be on the hook ?
 
#3 ·
A couple of slides from a presentation by Mark Dotzour to a room full of real estate people. His overall takeaway was, "Still at high altitude at rapid speed, starting a gradual descent" as it relates to real estate.

While home sales have slowed down, housing inventory is very low. And with land costs, building costs, and trade costs going up, it is harder to put "value priced" homes on the ground. He mentioned that rates are being raised so that they can lower them in the future if a stimulus is needed.
 

Attachments

#6 ·
The nonagency mortgage delinquency fiasco will not go away just because Wall Street and the pundits act as if it has. I am confident that this entire charade will start to unravel within six to 12 months. It is wise to prepare now.

I dont see the entire mortgage industry unraveling in the next 6-12 months, and wanted to provide a few facts as to why.
 
#9 · (Edited)
It's been a little over a decade since the market bottomed out in 2009 during the peak of the economic crisis. The next recession is always right around the corner. The last time was the fueled by the mortgage crisis, in the 1980's we had the Savings and Loan fiasco and over speculation in the stock market and buying on margin caused the crash of 1929.

Live within your means, put down 20% on your house, don't do liar loans or buy more than you can afford. Save a little for a rainy day and don't over extend yourself with credit and debt. Have a little gold, guns, ammo and tools just in case...

If for some reason there is another Mortgage crisis you will not be effected to the extent other were.
 
#10 ·
It is a worldwide economy and I firmly believe one of the reasons The Great Recession did not turn into the The Great Depression II was China stimulating their economy and continuing to buy raw materials for their economic expansion.

But if you think we have problems with risky mortgages and a housing bubble look no further than China. They have built entire cities that are mostly vacant and are in the mother of all housing bubbles.

I cannot see this ending well for China. And when it pops, (and all bubbles do eventually) this will send an economic shock around the world. 65 million vacant homes? That is crazy...

https://www.citylab.com/equity/2019...ts-housing-market-bubble-ghost-cities/583528/
 
This is an older thread, you may not receive a response, and could be reviving an old thread. Please consider creating a new thread.
Top