https://www.cbsnews.com/news/home-prices-mortgage-rates-moodys-mark-zandi/
7 replies (most recent on top)
Yeah. And wait til the housing crisis in China hits second gear. It will make 2008 look like a hiccup.
I blame investors. Why can’t berkshire hathaway stop buying up my entire neighborhood and renting them out. They are ruining our communities
Yeah I knew this thing was gonna crash when people were paying way over evaluation. You’re not supposed to go into a house at a loss. When the fed increases their rate, people are either gonna be forced to sell at a loss if they want to move or just stick it out for the foreseeable future. I expect these real estate companies will have to eat losses on their residential investment properties
I bought 7 years ago and it's up 70% based on Zillow. I am in So Cal.
It's so overpriced.
We are all overpriced
Moody's who quite famously engaged in what should be criminal conspiracy regarding the rating of MBS leading up to 2008 that cost pension funds, mutual funds and investors billions of dollars makes further statements about the housing market.
Sorry but I don't put a lot of stock in what Moody's says about anything.
There's pretty strong evidence that the rise in house values is structural not speculative. This is essentially the constraint of supply. There are multiple causes of this including:
- The US building very few new homes 2010-2020. There are lots of reasons for this. A big problem is the type of housing being built, particularly in urban center where like NYC where the vast bulk of new housing units are ultra-luxury condos;
- Permissive policies allowing the rich to park money in real estate. This particularly includes foreign nationals from places like China, India and Russia; and
- An increase in people owning multiple properties. These include second homes, vacation homes and short-term rentals (most notably for AirBnB). There's strong evidence that AirBnB in particular has huge negative impacts on a lot of metropolitan areas.
A lot of tempted to blame Blackrock and other instituationl investors as constraining suply. this is completely overblown. These account for less than 1% of US homes.
Ouch