Real Estate Investor Warns US Is Entering Greatest Correction of His Lifetime

SPAM

You're in Philly? I feel your pain. I recently got out to a suburb, I was in the Mayfair section. I lived there for about 5 years, it was ok at first, but crime skyrocketed in a short period of time.

We were trying to buy for about a year, but the market was brutal. People offering cash, offering over the asking price, waiving inspection contingencies, I had little shot. Unless I wanted to drive 1.5 hours to work and try one of the cheaper counties, like Berks, Lehigh, etc.

I settled on renting again, but I'm about 2 minutes from my job. Plus I'm out of Philly. I do want to buy eventually, maybe once rates go below 7% again, if they do.

He said it doesn’t include 'single family homes'. So he’s talking about a niche correction that doesn’t affect the homes needed by the vast majority of families

However, there is a correction unfolding in the U.K. that isn’t contained to particular sectors.

But I don’t know how/if this global slowdown will manifest in the US.

In the U.K. its tsunami of problems triggered by a cost of living crises hitting after more than a decade of free money (easy finance), so we’ve got millions of people over leveraged and stagflation that’s probably going to pivot into fast deflation and a depression.

originally posted by: namehere
well of course when your housing market is artificially sustained through regulations that promotes excessive loans and irresponsible financial decision making, of course a correction is inevitable, home ownership should not be over 65% of adults, that's an unnatural level of ownership. its not just biden, its every president since our founding either indirectly before 100 years ago or directly within the last 100 years trying to push home ownership to an unnatural obsessive degree, people shouldn't be as obsessed over it as we Americans seem to be, hopefully we'll finally get the message to deregulate our housing market this time, maybe, and stop giving out loans so readily to everyone, even those who cant pay for it, for everything. we need to cast aside the illusion of wealth it has created in the minds of so many of us Americans, and learn some humility.

It is unintended consequences. The govt has an interest in people owning homes because most wealth for the average person is generated through owning real estate. Owners also tend to care for the homes and community better than renters. This is what drives their policy making.

The issue is that govt policy / regulations has created a very bureaucratic system in which there is little innovation and actually works to inflate housing costs by offering low down payment loans and financing to those with weak credit.

It is very similar to how govt policy has inflated University tuition by offering easy financing.

They create a feedback loop... housing is too expensive, therefore we continue to offer lax financing which further inflates housing. They don't realize housing is expensive because the govt keeps offering lax financing.

a reply to: Edumakated

PM4U

a reply to: Edumakated

Yup. Not 2008 for sure.

Definitely a down trend on flippers especially with the rates we have, the smart people bought in at low interest knowing their investment would be long term, as in a house they see themselves living in for 20+ years or more.

What’s your thoughts on housing the next 5-10 years?