Housing Market Euphoria will End Badly As The US Housing Enters In A Massive Bubble In 2021 The real world has been trying to tell us real estate is not a permanent store of wealth. The fictitious financial wealth in real estate disappears. Housing isn’t going up, the dollar is going down. And they are not going back, because the dollar isn’t. In the 1970s you could buy a brand new waterfront beach house in Florida for $40k then. And by 1978 if was $100k and no one could believe it. And now it’s $2m and no one can believe it. And in 5 years they will be $3m. And in 10 years, $5m. But the surge in home prices have not benefitted the homeowner at all. Those buying today are lifelong bank slaves which is exactly what the banks want. County assessors are pulling in record revenue. Realtors enjoy the nice commissions. But the homeowner does not benefit. There are more realtors in America than homes for sale. Let that sink in for a moment. Every waitress, hot chick with no education and 80 IQ moron is now a realtor. All thinking they can make their commission quickly and be rich. Money pouring down from Asians( Indians, Chinese and other migrants), people migrating from California, New York to suburban metros - DFW, Virginia, Atlanta, North Carolina, Massachusetts, washington and every where else where homes used to be affordable. Builders are freaking not even able to build homes as fast as these crazy rich are putting in deposits. What used to be an awesome home for $600K is now selling for 1 million in a span of 3 years. These folks have made millions in the stock market, saved millions through lastt few years, and they are diversifying by investing in real estate and it has just now begun. Stimmy checks, soaring construction costs, and Biden's proposed $15K to new home buyers will make prices soar. Eventually the bubble will pop . State and local budgets are completely busted. Housing is an indirect way to prop up revenues through property taxes. Thing is that it is a cost of living tax on everyone just to pay pensions. It would be one thing if that money was fixing roads, updating sewers, etc., but all of the money goes to pay people not to work. This is why we have crumbling infrastructure due to misallocation and mismanagement of tax revenue. This bubble is popping any time soon. 2021 may be the most violent real estate market in a lifetime: starting with mass exodus out of the dying cities and states, then punctuated halfway through by the eviction moratorium ending on June 30. Supposedly 20 million households could face eviction; as eviction moratorium extended to June 30, covering 20 million US households. Not to mention all the folks facing foreclosure looking to dump and cash out before the bank takes it. Start foreclosing on all those people not paying their mortgages and there would be plenty of supply. We can't do that though because it is not progressive. So you have millions of landlords who've been hemorrhaging cash, forced to allow renters to remain non-paying, evict their tenants in August and list their homes in the red-hot market to try and recoup their losses. Boom. Market turns immediately south. One of the first signs of a tanking economy is the housing market. The housing boom is another government created market distortion. The forbearance program and eviction freeze removed huge swaths of inventory from the market. Note that deadbeat squatters and homeowners don't have their credit scores impacted for non-payment. What we have is a moral breakdown at every level of the housing market. I think the government and financial industry is well aware of the implosion that will result if they restart business as normal. Expect moral hazard and can kicking to continue indefinitely. Wages are stagnant, and it's tough for many to even think of buying a home. They can't qualify for a loan. 40% of Americans live paycheck to paycheck. How many you think can afford to buy a home. Homeownership is less affordable now that even during the housing credit crisis. The economy sucks for 90% of Americans. Only the top 10% have been making gains for about 30 years. There is a growing housing affordability crisis that is making it increasingly difficult for millions of middle-class households to buy a home or afford their rent . The housing boom sparked by the Federal Reserve during the pandemic was built on historically low mortgage rates (thanks to Powell), and accelerated by a combination of record low inventory as city-dwellers moved to rural areas amid remote-work phenomenon. While the job market hasn't changed much in the past five years,wages still too low. The stock market is detached from reality. This is a bubble. No doubt Housing market is in one gigantic bubble. People bought high and now are trying to sell. They are losing money. Bringing checks to closing. Auto loans are in trouble. Defaults are way up. We are sitting on a bubble that will explode shortly . And seeing the Fed injecting billions into the repo market, it is clear something is happening. This something , is global, and I expect home prices to drop significantly over the next few years. We are witnessing the Wallstreetization of everything. Silicon Valley is now run by Wall Street, not consumer demand. Because Wall Street provides the cash. Wall Street now also owns the housing market. Welcome your new overlord, peasants! 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. Thank You. The central bank and its counterfeit money are destroying America and the world! The Fake Money cartel loves it, it's like pennies from heaven, and homeowners who are mortgaged out are about to get shafted real hard! The wealthy investors can't swoop in because they'll find the poverty index isn't going to improve from here, which means you can't buy a good deal in a deteriorating serfdom society where you can't find a neighborhood that isn't overrun with immigrants, crime, drug dealers, And gangs. Virtually everyone believes the false narrative that the "American Dream" is owning a home. What most Americans "own" is a burdensome mortgage, which in turn makes them a "slave to the lender." Even when our homes are debt-free, the GOVERNMENT owns the FIRST lien via property taxes. Quit paying your property taxes, and you're going to find out real quick who it is that really owns your home. In spite of what the banking and real estate industry says, the TRUE American Dream is based entirely upon freedom and liberty and is NOT dependent upon the "ownership" of a material good. Homeownership is overrated. You don't really own your home anyway. Stop paying taxes, and you'll see who owns it. Get the right RV with a shower. Inboxes and mail them to the IRS. In the US, housing prices are grossly inflated and falling fast. Housing prices are cratering during a time when home mortgage interest rates remain at historic lows. What happens to prices once interest rates are, for a variety of market-driven reasons, forced higher? If upcoming generations expect to live on the $15 per hour. Would you really expect them to buy the overpriced house? How many boomers are leaving the nest for a smaller nest or checking out? Expecting to cash out, but wheres the buyers for this overpriced home? There are no move-up buyers for the boomer McMansions. The only buyers in that price range are basically boomers selling to other boomers (swapping like for like assets). There is a feeding frenzy for entry-level homes, but since there are no new entry-level houses, entry-level buyers are buying houses that need a lot of repairs because they don't know any better. These entry-level buyers are just one HVAC or roof replacement away from foreclosure. A generation of parasites living off borrowed money and credit come looking for a bailout with a tear in their eyes. Bring back debtor's prison and hit every default with the IRS income tax for unjust enrichment. Lenders aren't your mommy and daddy. And if you borrowed from the mob. They will collect as beneficiaries on your insurance policy. Right before the last bust, The banks said if you are breathing, we will loan you as much as you want. Too many people go too far in debt. The government makes money on every house that is built or sold. Huge property taxes add to the burden. Sales taxes on all items in a house. Environmental laws about cutting timber and many costs put on wages. From painting to landscaping Then huge gas taxes and fees on trucking And the Building departments are anti contractors. And then the government says we can't understand why houses cost so much. California will be the first state to go down. Developers, realtors, and landlords will never ever listen until it all comes tumbling down around their ears. Harry Dent says we have one last blow-off coming before the sale of the century. But it's going to be interesting getting there. The market has to blow out all those stops and still keep going down in order for the sale of the century to get here. The warning signs are everywhere. Foreclosures are ticking up, bankruptcies slowly increasing, subprime auto about to go critical, add in credit card debt, government overspending causing property taxes to rise, and banksters going nuts .Then you have the formula for beautiful, sweet 30% correction at a minimum in prices in the hot markets; in some cases 50%. All real estate markets have their own cycles and are clearly visible from which segment of the market is rising or falling. For instance, the last to rise is the condo market. When those prices go up, the cycle is over and is set to fall. Once you understand the primary cycles, you will understand the perfect time to purchase a home, a townhouse, or a condo. That you might be able to make some money from the place you live-in is a cute and great day, but if all you own is a home, that is your place to live, and the best thing to do is to pay off the mortgage as fast as possible. And if you are really serious about real estate as an investment, get a broker's license so you can participate in the money made from buying and selling. If you are serious about real estate, get the licenses you need to sit at the table and simply learn your local cycles for houses, townhomes, and condos, which will tell you when to buy and when to sell. The freedom that comes from owning a place to live with no mortgage is fantastic. But, I need to remind people that property tax never really ends. It is a myth that one ever owns real estate. Instead, you just borrow it from the local taxing authority as long as you are willing to pay the taxes. Having no mortgage tells you nothing about the cost of owning real estate.Don't purchase any real estate until you have carefully evaluated the cost of taxes. In many communities, it is the taxes that will absolutely kill you. There is very little private property in this nation. The government owns it, and we just pay rent on it. This in itself, should be unconstitutional. A home is a place you live in. Not a trading vehicle. 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!
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