Should The US Brace For Another Housing Bubble To Burst? 

No mention of blackrock and other investors taking as much inventory as possible and inflating rent prices

It’s ironic that the federal reserve would start calling out a housing bubble but fail to mention that they are the ones inflating all these bubbles, from tech stocks, to Dogecoin, to energy markets, and on and on.

As a Los Angeles Realtor I encourage buyers to hold off on buying a home at this time. But just like prior to the last crash most buyers do not listen to me and go out and find a Realtor who tells them what they want to hear. When buyers are excited about buying a house they don't want to hear a Realtor like myself telling them to wait. Prior to the last crash I had close friends who used other Realtors instead of me to purchase a home saying: "well you didn't want to represent us, and the Realtor we used was so knowledgeable. He agreed with us that prices are just going to continue to rise forever and never go back down and that we had better buy right away". Then two years later they were upside down in their loan in a house that lost 50% of its value. The experts say there won't be a crash because inventory is low. Inventory will rise as interest rates rise. They say in the last crash the people didn't have equity in their homes. They did have equity in their homes last time but it diminished as property values plummeted. The equity people currently have in their homes will decrease as property values go down. Many just like before, have tapped into their equity using their homes as an ATM machine. 😀

Taking steps before it spirals...I'd say that ship has sailed. Absolutely, no buyer is getting a good deal right now.

After studying the trajectory of great assets like real estate, dividend paying stocks of blue chip companies, gold, etc, my conclusion is that most great assets never come down to the price that you want them to so you can buy. just buy the ones you can afford today

God I hope the housing market crashes like a nuclear weapon. I want these big corps to go belly up!

Builders are building homes with HOA fees. No one wants that! Better buying a traditional home.

My bf and myself are paying $2700 for a two bedroom apartment in SoCal. We don’t live in a nice neighborhood and we’re paying this much already. Went to the bank and asked for a home loan and bank denied us. Saying we don’t make enough, but we’ve been renting for 5 years. The point is, if you don’t make more than $300k in SoCal, you ain’t going to get any bank loans

I was on zillow yesterday, and just out of curiosity I was clicking on houses all over the country in a certain price range. Just about every listing the sales history was like this: March 16th: Sold for $415,000 March 30th: Listed for sale at $508,000

All these people paying huge money for a mediocre house. Do they not think about inflation, skyrocketing cost of living, an upcoming recession, the possibility of layoffs? People seem to be living in la la land.

People who want to buy a home should aggressively look. However, never pay more than the house is worth! Don't be forced into making a bad decision that will cost you later on.

Many of these real estate agents should be in jail for lying. It's a bubble.

Corporations purchasing these homes are causing this housing deficit. How can a regular working class citizen compete against a multi million dollar company? Feds are going to not only have to stabilize rates but also create limits on how many residences that commercial lenders and organizations can purchase in each zone of a city.

Our government allows people who live in other countries to purchase real estate here….. especially corporate companies…

At this rate it would take the average person over a decade (without food or water) to be able to afford a house.

Starting early is the best way of getting ahead to build wealth, investing remains a priority. The stock market has plenty of opportunities to earn a decent amount of money with the right skills and proper understanding of how the markets works.

God I hope housing becomes more affordable 🙏

No mention of investors? 🤨

we need big money/companies to not be able to buy single-family homes. Honestly, there should be regulation over this, its just disgusting. Most times it amazes me greatly how I moved from an average lifestyle to earning over $63k per month, Utter shock is the word. I have understood a lot in the past few years that there are lots of opportunities in the financial market. The only thing is to know where to invest.

The reason why the presumption that there is an imminent housing bubble "pop" is false, is not easily visible. If I hold $550,000 dollars in a bank account starting today; in exactly 3 years that money will have the purchasing power ("be worth") of $400,000 and i will be wasting money on rent the whole while. If i buy a house for $550,000 today that is only worth $450,000, in that same 3 years it is likely to be worth more than $550,000 and i will be paying it down instead of wasting rent money. All markets are over priced because the Fed is printing money to zero. Home builders learned from 2008 not to over leverage or over extend themselves building product. We build only to meet demand and we build entry level homes in bulk. If homebuyers wont pay what we need to meet our margins, these homes instantly get filled with renters and placed on a 29 year depreciation tax schedule. This is why there is a housing unit shortage currently, because home builders have been "risk off" since 08'. Alot of would be home buyers looking to buy a house for 25% off are going to be dismayed in 2 years when they realize they could have bought a house for 500k but now it costs 600k. - In summary: If you own dollars you are becoming poorer, If you own assets; over time you are building wealth. Its not house prices going "UP" but the purchasing power of the dollar going "DOWN" - Hope this helps someone....

This will eventually all come done. Most Americans can’t live like this long term. There is an issue with investors overpaying but many are not in it for the long run.

No one is mentioning that part of the problem is Airbnb and verbo people are snatching up houses to rent out like hotels. Contributing to the housing crisis. We recently stayed in Boise Idaho - within 5 miles there were 195 Airbnb homes for rent ( whole home) getting $170-265 per night plus cleaning and admin fees! It’s ridiculous BUT the big picture is that there is now 195 family homes in that 5 mile area with no families living in them! ( we didn’t rent one of the homes, we stayed at a hotel)

People need to start thinking this through. Does it make sense that someone if offering $100,000 over asking price. A lot of people are going to get burned when this thing turns around.

Make it illegal for corporations to own residential homes now

I’m so happy these prices are dropping . This housing market showed me how greedy people and selfish people can be, and made me hate real estate agents even more

How did y’all do that whole segment and not mention that corporate investors are outbidding buyers by $100k+ causing the skyrocketing prices OR that these very same investors are buying entire developments before they are built. Shame on you.

Imagine rates going up and prices going up - What a chaotic situation

California housing prices are just insane. Make NYC look reasonable.

1 in 7 homes are now owned by investors. There isn’t a shortage in homes. There’s a shortage in homes that haven’t been pillaged and plundered by investment companies.

It's a bubble, I work in asset management and realtors only know about the MLS, they don't go much past surface level data.

Finally! Even mainstream media is starting to admit this housing market is in a bubble. The writing is on the wall. This insane market CANNOT sustain itself at this rate.

I've been praying the bubble to burst.

The cause for the housing bubble this time around are multinational and large corporations like zillow, open door, and others who scoop up thousands of properties and sell them at inflated prices for a profit. That creates a market effect on other homes on the market.

Asking real estate agents if we’re in a bubble lmao

People are going to get to a point where they are not going to pay these outrageous prices. It's a supply and demand issue. But everyone is panic buying and overspending. Eventually, people are going to pull back. That's when prices will soften. Most people are fed up already and pulling out. Home owners will only sell their house if they feel confident they can find another. This would work itself out if people stop panic buying. It's the toilet paper thing all over again.

As long as inventory is low there is no bubble.

I’m so confused, if most people can’t afford a home then how is there a shortage?

Don't buy a home now, it will be a huge loss

They aren’t telling the full truth. They leaving out a main players in this problem

Patiently waiting for the bubble to burst.

Speak the truth… many hired fraud appraisers whom many of you paid to raise the price and value of your home. Now we all know the problem it’s not supply and demand…it’s GREED…GREEDY people!!!

Lenders aren't giving subprime loans like they did in 2008. They're being super conservative and the lower inventories nowadays makes the real estate market much less affordable

My friend who makes 6 figures is having hard time buying a house in a non-costal market. Not looking good for most. I am seeing a lot of investor purchasing of homes like never before.

This housing market is being fueled by cash buyers and well qualified buyers which is the EXACT opposite of the 2008 housing bubble where anyone with a pulse was being given a mortgage…

They say there are 16 million homes vacant, this is all rich people buying homes with all the money the Fed printed, this issue was created by the Fed and their printing machine, what a shame

Biggest differences from 2008. 1. Very high demand (very low supply) = Bidding 2. Much stricter lending 3. COVID allowed people from other states move due to WFH and $ 4. Many out of area buyers have cash from selling properties and/or investments. 5. There are plenty of jobs but still not enough entering the workforce. 6. Rising interest rates and recession will continue pricing out those who could've bought a year ago. Again, there's no way to know for certain, and a slight correction is imminent. Interview several experienced agents in your area. It's won't be easy but you CAN actually still find a good deal!

hmmmmmm...so odd....no mention of investors snatching up many of the entry level single family homes to hold and in turn rent out. i call BS.

They always say this time is different. The problem is people don't want to sell due to uncertainty. Births are down way before covid, life expectancy is down 2 years because seniors were scarred to death, household formation is down. Why do they not correlate these things? Because it is about creating hysteria like covid.

Housing bubble will burst once there is massive unemployment and layoffs.

Give me a Break...kids are wearing $300 sneakers, used cars have Doubled . Sports and Concerts people are Dropping $ 500 to Thousands for a 3'hour Event. Housing is taking a Playbook from Disney and Vegas Casinos. They will Take as Much cash as your willing to part with

Adjusted for stagnant wages, housing has never been so expensive BY FAR...

Where I live this has been happening for the last 6 years. Almost doubled every year.

The US and the Fed shouldn’t have created another housing mess. This next crash is going to make 2008 seem like a picnic.

Seen this before. Ultra high prices for houses, couple years down the line it's almost worthless.

The Fed increased the U.S. money supply by 40% which decreases the purchasing power of the US dollar. So you need to bring more and more of your worthless dollars to the table to buy goods. Making the rich, assets holders, even richer and the poor even poorer. How much more "free money" can you people afford.

The U.S. should concentrate on building more homes for first time buyers and that includes condos and townhouses. I see lots of rental units popping up... not many condos popping up for purchase.

1. Never ask a car salesman if you need a new car. Same goes for real estate. 2. Conditions are not like 2008-2010 they are actually worse. 3. This lady on tv got fomo and bought her place because of that. She got a terrible deal no matter how you look at it.

It is WALL STREET Once again !!!! Do NOT Buy in this Market!!!

These people are being out bid by real estate investment firms. Period.

American homes are extremely overrated and way overpriced compared to the quality. And, add to that a lack of design sensibility, American homes are a joke. Yet, folks do not even notice, nor expect more for their new home.

Everyone sees outrageous home prices and calls it a bubble. I agree, these home prices are ridiculous and out priced many families. However, if you look at the cost of labor, cost of supply, backlog, and inflation; home prices are where they should be. Throw in institutional buyers buying entire blocks of homes, we’re in a supply and demand problem. So no, we’re not in a housing bubble.

Housing bubbles, stock bubbles, gas and groceries bubbles! Why is everything bubble in America? Because the mighty $ has a mighty bubble!

It is a bubble but also a scam people are buying, “competing” by forfeiting down payment, no appraisals, and no inspections! That is not sustainable and not sticking to fundamentals. And I will be here when it all ends. I love capitalism! I will take advantage when it all falls apart! 🇺🇸!!!!

It’s a shame that Fed is recognizing the problem but they are not taking any responsibility to control it. I am a commoner and not as smart as Fed but if fed needs a suggestion, here is a suggestion from a dumbo. 1) Increase the inventory, provide more incentives and better interest rates for the first time home buyers and 2) put more restrictions and taxes on multi home buyers until the inventory meets the demand. It’s a shame that Fed did not question the situation low inventory for many years and now they are responsible for this situation.

Banks giving mortgages to people that couldn't afford them, then selling those bad mortgages as grade A to investors,caused the collapse in 2008. Banks got bailed out, while millions of good people got evicted.

My husband and I had an opportunity to buy a nice little home in our town for 80 thousand.. Our bid was accepted, then we found out with FHA that we could not put any cash in our back account for 90 days- the loan officer failed to mention this and all our money for closing was in cash that we could not put into the bank. That house is now for sale again with 154 thousand dollar price tag.

This is what Capitalism looks like when you remove all the guard rails.

The problem is that Homes purchased by investors are sitting Empty because of the High Rent otherwise there would be no Shortages. Then we Wonder why there is so many People Homeless?

Its not a supply issue. There's not enough "affordable" homes. People are greedy but everyone would take advantage of the times.

We've been in bubble were just waiting for it to pop.

Nah that’s not it! These corporations are buying and outbidding people like me, a millennial, because these companies say that people like us would rather rent. I’m 36, my significant other and I, we are actually eager to leave San Diego because of the ridiculous costs of these SHOE BOX houses. We’ve been looking at houses in west Texas, small towns in Arizona, and a few in New Mexico. I’m a disabled vet and it’s been very hard and I’m already pre approved for $715k, like WTF?!

I certainly hope a housing bubble does burst. Idiots never learn. Keep doing the same thing over and over and expecting a different outcome. Unreal!

Still basic economic 101 supply and demand supply is low and demand is high but when they start jacking up interest rates like when I sold real estate in the 80/90's demand will stop and prices will tank making real estate affordable again. The average int. rates in 1990 was 10.13 %.

YESSSSS!!!! Houses have been sold over priced and renters rates are high. Eventually people will stop being able to afford the rents and homeless rates will skyrocket while mortgages start being defaulted.

My neighbor just sold 90k over asking. People need to calm down and ask what the builders need to build. Support the banks and builders with business friendly policies.

When people offer higher bids on houses they are paying cash for that portion on top of the loan amount. It’s not smart and it’s a different bubble than 2008 completely. No mention of investment firms paying cash for loads of listings. In Atlanta 40% of the market

The idea that the current market conditions don’t match the previous 08 crash, therefore a housing crash is not possible is absurd. It just means the catalyst is different but will have the same results, significant job loss.

I pretty much feel screwed.

People were speculating a bubble burst since 2018. Not happening.

More than 16 million homes are vacant in the US. That’s nearly 1 in 10 homes. It’s not a supply and demand issue

I have been out looking for a home for almost 2 years. The FOMO is beyond the pale in this market. I went to an open house this weekend because my friends neighbor is selling. So I thought it would be cool to at least go take a look. The house is in a decent location but is so overpriced. The open house was really a different vibe than i saw in the past. Instead of everyone keeping to themselves. Most people were talking about how ridiculous this has all become. The listing even stated. AS IS. So they are not going to even entertain any contingencies. The shower in the basement was broken, unhooked and missing multiple tiles. If we aren't in a bubble then I'm not sure what one would actually really look like.

They are saying there aren’t enough houses for those who want one…. And yet there are soooo many abandoned houses, sitting and looking worse by the day.

THE GOVERNMENT NEEDS TO SET A RENTAL RATES CAP FOR THEM GREEDY PROPERTY OWNERS OPPORTUNISTS BIG BANKERS INVESTORS OPPORTUNIST CORRUPTION IN THE HOUSING MARKET....

Building plenty of homes that people cant afford!!! 🏡America

Real estate gonna crash, but appreciation gains of 100K will still have adjusted gains of 30K after the crash. Not bad still for 2 years of home ownership.

Yes.

Single moms are buying homes? Where?

Single family housing & multiple family housing units needs to be priority for all builders. It's the only practical solution.

Thankful I own two houses out right here in California ☺️

More than 16 million homes are vacant in the US. That’s nearly 1 in 10 homes. It’s not a supply and demand issue, especially when we’re only 5 million short.

This time is different than the other housing bubbles because they added 40 percent more US dollars in this one. The other housing bubbles in the past did not have all those extra dollars pouring in the pool. I do not think we are in a housing bubble, its adjusting based on the amount of dollars. More dollars equal less buying power on the dollar. Almost everything is going up base on inflation. Its not just housing its almost everything. The price increases will slow down soon but not go down. That is just what I think.

Houses never corrected last bubble burst because the mortgage holders got bailed out with tax dollars. The same money they are forcing people into homelessness now.

This bubble is about to pop!!

“ I did that “ - Joe Biden

Something has got to give… More likely a drastic slow down in year-over-year price growth rather than a complete bubble burst. Not to burst anyone’s bubble, per se.

Homes are 3 times the size these days of what I grew up in the 50's and 60's.

I know someone who put an offer in on a home and was outbid by someone who payed $100,000 over asking price… in cash.

One word for this market -- unsustainable.

well as long as there are people willing to get a bad Real Estate deal aka pay way more then the home is actually worth, the market will be crazy, but this will turn around soon, even the smart Investors are no longer buying, they know its a real bubble alright...

If you're in the market to buy, you should start learning how to inspect homes on the spot so you can make the decision then and there. Most houses nowadays are definitely overpriced junk not worth 350K but selling for close to a million. But if you have a million, and buying an overpriced junk, then you can afford to tear it down and build new, since the land is only worth a million and the home worth 0.