Comments by "worn down" (@worndown8280) on "78% of America QUITTING Housing Market" video.

@shane5385 being smart is over rated. success is relative. If you are a responsible person you are good in my book. I only asked your age because we havent been in this type of situation since we were both kids. The inflationary environment we have now hasnt been seen since the 70s. At that time prices werent inflated. Right now they already are. The effects are going to hit at least twice as hard.
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@shane5385 Which means the price must fall. But the sellers psychology hasnt shifted yet. And when it does it will be to late. And then buyers will wait until housing hits the bottom unless they absolutely must buy. I never thought that it would be as 2011, but with a heavy recession and high inflation we could very well get back to 2011 numbers once liquidity has been pulled from the various markets.
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@shane5385 Yes they are, lots of liquidity, which is why the Fed will have to raise rates to reduce inflation. Inflation will not go away until that liquidity is gone. Once the Fed puts its big boy pants on and does its job, the effects overseas will be catastrophic. Foreign money will pour into the US for protection and increase inflation. So the Fed will have to raise rates even higher. The problem for home buyers is none of them have liquidity to buy. And as inflation rises and wages stagnate, any savings they do have will quickly be eaten away. That means no down payments. And this is even before talking about recession, job layoffs or the greater effects of inflation on all the markets including housing. If I may ask, how old are you?
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Wages cant increase. Those expenses cant be passed on anymore. Hence recession and layoffs. The question is how low will housing fall not if?
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None of those things really matters. With the data we have now we know inflation will hit at least 11% before the end of the year. That means the Fed will have no choice to increase the Fed basis rates regardless what the mortgage market wants. Everyone is living in denial. They think interest rates might go to 7%, but they will have to go much higher once the foreign money starts pouring into the US for a safe haven. The smart people who are selling now are going to put their house below market rate to get out now. Once the layoffs start in mass and people start missing payments there will be no one to buy. Even most cash buyers will wait for the bottom unless they need to buy. Its literally the worst case scenario. Every time I look at the future data it looks worse and worse. Way worse than I even thought two months ago.
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@joeswanson733 lmao yes we did. Blackrock has existed since 1988. They buy all manner of things, including homes. REITs, Real Estate Investment Trusts, have existed since the 1960s, you just think that its a problem now because people make a big deal out of it. But the homes they own is a rounding error. REITs own about 500k properties, not homes, properties, and slightly more than 15 million acres of land. If you think REITs owning less than 500k American homes is causing all these problem, well your thinking meat aint good, respectfully. So walk with me here. If REITs own 500k properties, the maximum number of homes REITs could own is 500k, right? Well right now, there is over 83 million single family, detached, homes in the US. That means, in your head, REITs owning a possible 0.6% of the housing market is the problem? And lets be honest, the real number is lower. Most REIT holdings are in commercial real estate. We have this problem for one reason, inflation. Our nation, and many others have had horrible monetary policies since 2008. And now, there is no more room to wiggle. Prices will come down. Why would Blackrock invest in a deflating asset?
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@joeswanson733 Things are never as bad or as good as people say. Dont be so down. Just be ready. Always be ready.
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@Marty McSuperFly! I was half hoping for someone to call me insane. I have never seen data this bad.
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Except inflation projections 6 months out are at a conservative 11%. 50 and 25 pt increases aint going to fix that. The fed waited to long and everyone got use to cheap money. The idea that this can be resolved with a "soft landing" or avoiding even a mild or moderate recession is delusional. Its not just the Feds stimulus effecting our markets its the whole world. Most nations printed more than the US did.
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Well I cant speak for anywhere else, but in East Tn and even in Nashville rice reductions are endemic and houses are starting to sell, sell for below the fake metrics. But since 90% of people who post never say where they are from, might as well be never never land.
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@AA-Crow I am seeing them. I am seeing them declining all over the south. Day after day of price reductions. It was like someone turning a switch two weeks ago. Clearly you have blinders on in only certain areas you are looking at. Which is why I asked where you were located. And it could be in those areas you are right. Generalized statements, about real estate prices are pointless. Where you are matters. Its fine, I get it, you dont want to get lost in the minutia of market dynamics. Dont make generalized statements then.
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@AA-Crow lol
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