👉The Housing Market Epic Bubble Ready to Pop

👉The Housing Market Epic Bubble Ready to Pop Real Estate prices in and around Los Angeles, New York, San Francisco, and Seattle, are more irrational than they were in 2006. The Fed has ruined the real estate market. November home prices rose 9.5%, one of the highest gains on record. The surge in home prices is not slowing down, because of high buyer demand and a record low supply of homes for sale. Prices nationally rose 9.5% in November compared with November 2019, according to the S&P CoreLogic Case-Shiller Home Price Indices. That is the strongest annual growth rate in over six years and a significantly stronger gain than in October when prices were up 8.4%. It also ranks as one of the largest annual gains in the more than 30-year history of the index. Nothing new here. It's another bubble caused by the Fed's unabated printing of money. The federal government manipulated the market by placing a moratorium on evictions and foreclosures. Thus reducing the amount of inventory, which drove the prices higher. Now conversely, the Federal Reserve has stepped in and bought sight unseen (meaning the level of quality) a gargantuan amount of Mortgage-Backed Securities (these are the nasty instruments that caused the 2008 crisis due to all of the banks selling them at the same time); and thus reduced the stress on the system. As they bought more MBS (print more money), they drove prices of hard assets higher.The gold and real estate prices and the inverse correlation (one moves higher the other one moves down) of interest rates. As they bought more interest-sensitive securities, interest rates go down, and the price of hard assets (Gold and Real estate) go up. The cowardly Fed's crushing of interest rates definitely causes housing bubbles. Many if not most prospective home buyers only care about if they can afford the monthly mortgage payment. With mortgage rates down in the dirt, they will be more than willing to way overpay for a house as long as they can afford the payments. With 50% of small rental properties in delinquencies, 30 million people with continuous dependence on UE or other government aid, these low payments for housing do not justify the significant rise in values. It is inconceivable that a home almost doubled in prices over a year in certain areas. Real Estate is local of course, but a 70% price increase is nuts, just because interest rates are low. The housing bubble this time around makes the 2006-2007 look lame since the values of today's homes cannot support any metric for their meteoric rise. Like the spread of the virus and a repetition of the mistakes in 2006-2007, it seems we are unable to learn how to change our habits. Which is a shame; history may not repeat, but it most assuredly rhymes. Like the banks re-investing in credit swaps off the books, real-estate found other ways to create a bubble. The Powers That Be love artificial levers to enhance the volatility.Run it up, sell, and buy it back cheap. Banks are definitely not in a better position today. They are heading towards another bailout. People totally forget that the housing market did not really start to tank until a year or two after the global financial crisis crash. Guess what -- that was in a ZERO PERCENT environment too. It did not matter. The economic damage was too great. And the carnage brewing under this artificially re-inflated monster is far uglier. The Street and the realtors will do everything to play the con longer and squeeze more honest dollars out of average citizens before it implodes again. But they can't keep it up, especially when Congress isn't handing out trillions every quarter. Keep in mind that according to Greenspan and El-Erian in their books, the problem wasn't poor people not making their mortgage. The problem was there were unregulated derivatives bets amounting to three times the actual world's economy that bet on the mortgage tranches and other derivatives. A $150,000 home loan going down in cheaper areas was not nearly the problem that the half a million or more in derivatives were bet on that mortgage. El-Erian referred to it as shadow banking. Structured trusts not under any regulation in the entire world. Without the legal at the time, derivative bets on mortgages, the mortgages failures alone would not have brought down the world's economy. A bank could sell derivatives over and over and over on the same mortgage trances, just like bettors are not limited in the size of their bets. I should add if properly appraised, mortgage tranches have some good use. If housing in a broad area has a median price that's bigger than 3 times the median income of that area, there's a problem. Don't fix the problem with bandaids; let the home prices correct, and the problem will resolve itself. Making housing unaffordable simply is not a long term solution. It must correct to the levels that the population of buyers can actually afford and that number, at least in a low-interest-rate environment, is 3, maybe 4 times the income (at the absolute maximum). Any higher than that, you're in a bubble. Welcome back to The Atlantis Report. You are here for your daily dose of the truth, the whole truth, and nothing but the truth. Please take a second to hit the like button, hit the subscribe button, and don't forget to also hit the notification bell. Real estate prices nationally rose 9.5% in November from the year before, according to the S&P CoreLogic Case-Shiller Home Price Indices. The 20-city composite showed a 9.1% year-over-year gain, up from 8% in the previous month. Phoenix, Seattle, and San Diego continued to show the strongest price appreciation of all the major markets in November. This is how 2007 started out right before the Meltdown. I still don't get this market. Eight million people can't pay their rent, 12 million are unemployed, Everything is disrupted, and now there is a new strain of Covid, and we are talking about instant recovery. I think the market will not do good till 2022 or 2023. Government can't even provide $1200 to each person. $600 is a slam in the face. I think the market goes down starting now. Correction is coming. All these Robinhood traders will have to face a cruel reality and learn a lesson for a lifetime. This is not the ideal time to own an apartment building. Millions are struggling to pay rent, and despite the extension of the federal eviction moratorium through Jan. 31 in the latest stimulus bill, a lot of people will likely face eviction in the coming months. According to data released on November, 17 million households are behind on rent or mortgage payments. Of course, this has a trickle-down effect. If renters can’t pay their rent, that makes it difficult for apartment building owners to keep up with their mortgage payments. If they default, who’s on the hook? Certainly the US taxpayer. Total outstanding mortgages on multifamily housing property stood at $1.65 trillion in Q3. That was up by about $31 billion from Q2, according to data compiled by the Mortgage Bankers Association. Of that amount, the federal government backs $798 billion. That’s 48.4% of all mortgages on multifamily properties. They always say it never does, but history shows otherwise. Most of these buyers never seen a downturn. They are going for the under qualified now, just like 2006. With the vail of things are different now. Before they gave loans to anybody, today they give loans to anybody with a job in a pandemic during a shutdown. Assuming nothing is going on, and everything is completely back to normal. I mean, this happens all the time, right? Well, every 100 years-ish, but hey, it's business as usual. K shape recovery. The housing market is in a massive bubble throughout many parts of the USA. The benefit of low rates is canceled out by ridiculous prices. As for New York City area ,prices will have to fall dramatically for it and the surrounding sunburns to become attractive. Regardless of what some are saying, many jobs will continue to be remote after the pandemic. No need for high priced New York City office space or residential. Approx 1.8-3 million homes to enter the distressed market between now and 2025 according to Auction.com. Watching the rental market for indicators of the shift. I already see rents drop in many areas. FOMO and funny money have the willfully ignorant by the neck. It’s DejaVu. The ostrich put my head in a hole and pray financial strategy. This is how Dalio's crew came upon houses for 70-80% off. The true cost of 3% down. Right now, we need to create and support small businesses before the corporate beasts swallow us all. Wondering how will people who missed a year of payments have the credit to buy or rent? No one will be moving back to San Francisco or New York. High tech and finance employees can easily work remotely. Who wants to be trapped in a big city when the next virus breaks out or the next riot starts? What good are cultural and culinary amenities if the local government can shut them all down or a mob can decide to burn them down? One thing that is driving outflows from San Francisco and Seattle is that many major tech employers announced a work from home policy, and the young urbanite employees realized they could move to cheaper locations. I'm curious if that trend will continue. The big tech companies have largely reported that productivity has remained high. And they themselves can cut their office space requirements by a lot. Los Angeles, San Francisco, and New York have embraced the homeless, drug addicts, and parolees for the sake of their homeowner and business tax-paying citizens. New York millionaires pay extra New York tax on top of New York tax, and now the city and state are freaking out that millionaires are moving to other states. Why are you freaking out? You created the problem ,Cuomo and De Blasio. Homeless just set up tents on sidewalks creating villages all over the city, ruining home prices, and using their days to use drugs and burglarize homes, cars and shoplift the local businesses. Retirees take their pensions and 4o1 K's to other states. Government leaders should do everything they can to keep those dollars in the states they were earned when folks retire with attractive benefits and quality of life. Working people realize that quality of life is more important these days, and Covid allowed employers and employees to test the telecommuting option, which may stay permanent for some. So I don't think these three big cities are ever coming back to what they use to be and for a good reason. The government leaders screwed it up, and the masses will leave and not return. This was The Atlantis Report. Please Like. Share. Leave me a comment. Subscribe. And please take some time to subscribe to my backup channels; I do upload videos there too. You'll find the links in the description box. You will also find a PayPal link if you want to make a donation. Thank you wholeheartedly to all those of you who have already donated. Stay safe and healthy friends! The Financial Armageddon Economic Collapse Blog tracks trends and forecasts , futurists , visionaries , free investigative journalists , researchers , Whistelblowers , truthers and many more