Real Estate
Housing Bubble 2.0 Has Popped
Yes, we have been in a housing bubble, in case you missed it. It started with the non-recovery post housing-crash in 2007. As foreclosures got sold, many people who had to foreclose or short sell were left with bad credit, lousy or no jobs and could not buy something else again.
‘Broad-Based Deceleration’ – Case-Shiller Home Prices Tumble Most Since Nov 2011, 3rd Drop In A Row
For the 3rd month in a row, S&P Case-Shiller home prices fell MoM with July’s 0.5% drop the biggest since November 2011. This dragged the YoY growth to 6.
Is Another Housing Crash Imminent?
Real estate prices are predicted to fall between 15%-40% or more in the next 1 to 3 years Mortgage applications have been falling steadily for over a year Typical Pool with Hot Tub in Florida Home During Housing Peak Homebuilders may be optimistic on the housing front, but the rest of us shouldn’t be. It seems they always get ahead of themselves with optimism, and then end up holding the bag, like when the last crash happened. In the few years leading up to 2007, I remember the plethora of new developments going up all around where I live in south Florida, with brightly-colored sales flags and dozens of beautifully decorated model homes in endless developments.
Latest Housing Numbers Reveal Disturbing Trends
There was much celebration regarding the jump in July housing starts and permits, which literally blew away Wall Street expectations, being the highest since November 2013. So is this the housing recovery everyone’s been waiting for? Sadly, no, because one glance at the internal numbers reveal that virtually all of the surge higher was due to a big jump in multi-family starts.