This article was originally published by Adam Taggart at Peak Prosperity
As we’ve been tracking here at PeakProsperity.com, the housing market is starting to look quite ill.
After the central bank-driven Grand Reflation following the Great Financial Crisis, home prices are now beginning to nose over from their new bubble-highs.
Has the Housing Bust 2.0 begun? If so, how bad could things get? And what steps should those looking to pick up values at much lower prices in the future be taking?
This week we talk with citizen journalist Ben Jones, property manager and publisher of TheHousingBubbleBlog— where he tracks the latest headlines and developments in the housing market.
And given the stream of data Ben sees every day, he’s extremely pessimistic on home prices in most major markets worldwide:
We’re going to see a collapse. The housing bubble is in the process of popping right now.
Everybody’s been behaving like speculators. Housing prices have been just like day trading stocks. What’s happening right now is a lot more suggestive of a bubble bursting much more than it does just a correction or a down cycle.
I can’t think of a market in the United States I would buy in right now.
There’s plenty of people like me who have a memory of how this is going to play out (from the 2007 housing bubble burst), and they’re actually probably all lining up the same way.
If you’re looking to purchase housing at better values once this current bubble bursts, you don’t want to buy from Joe Six-Pack. You want to buy from a bank or a lender, that will frequently be Fannie May and Freddie Mac. For instance, in 2010, I helped somebody buy a house for $12,000 through an online auction. That house had been refinanced four years before for over $100,000. That same day, we could’ve bought three more for the same $10,000-$12,000 price. That’s the kind of discount you want to see and it’s the lenders who are going to be the ones that give you those big discounts. Wait until the distressed sales. You don’t want to be buying retail in real estate.
Sheriff sales, trustee sales — they have to go through this process where they offer the property to anybody who can buy it, including the current owner. They’ll put a print price on it that’s usually what’s owed on the property. When you see them selling it for less than what’s owed, that’s when there’s blood on the streets. Wait until a foreclosure has been sitting on the market for about 6 months, after they’ve whacked it down eight or nine times. Then make a lowball offer.
You have to realize is that the guys that are selling these are hired professionals. Their job is to get rid of the houses — they’ve got so much to spend on them and so much that they’re allowed to lose.
That’s where we’re headed again. I would be very patient right now about catching a falling knife in the current market. Wait for the coming distressed discounts.
Click the play button below to listen to Chris’ interview with Ben Jones (43m:05s).
To read the full transcript, please click here
House prices here continue to go up. It is a very desireable place to live esp. for retirees. Thanks to the GOD DAMN CALIFORNIA REFUGEES locals have a hard time affording it! Thanks to these queers moving here we now have a faggot parade (locals have shot at them with pellet guns). This is a gun friendly state and mostly conservative but for how long? UNLESS YOUR AN EXTREME RIGHT WINGER… STAY IN CALI! WE HATE YOU!
Only pellet guns? What good is that?!?
#2 makes the point
#3 keeps the chance of being caught way down
You can make a decent suppressor with an oil filter or heck, just 2 liter stacked plastic bottles.
house is paid for, not going anywhere….let it collapse!
The Best News I heard All Day. I’d send them a check for .02 Cents. Then tell them Iron Dome just was shut off dismantled, and they need to get out of Palestine within 48 hours or else.
In Historic Move, Sen. Rand Paul Places Hold on $38 Billion to Israel
Sen. Rand Paul (R-Ky.), who has a history of being skeptical about U.S. taxpayer funds going towards the Jewish state, has placed a hold on the U.S.-Israel Security Assistance Authorization Act of 2018, which provides Israel with $38 billion in military aid over the next decade.
This has caused backlash from organizations such as the American Israel Public Affairs Committee.
“This bipartisan legislation authorizes full funding of security assistance to ensure Israel has the means to defend itself,” AIPAC posted on Facebook with a link to “urge Sen. Paul to stop blocking aid to Israel.”
“We are working hard to gain a final vote on this critical legislation,” AIPAC spokesperson Marshall Wittmann told JNS. “We believe that it will be enacted before Congress adjourns for the year.”
A hold is a procedure where a senator tells his or her floor leader that he or she does not want a specific measure to reach the floor for consideration, and therefore may filibuster any motion to proceed to debate the bill or other measure.
However, in this case, Majority Leader and fellow Kentucky Republican Sen. Mitch McConnell does not have to abide by Paul’s request.
Paul’s office did not respond to a request for comment.
The Senate and House of Representatives passed a version each in August and September, respectively. The former must pass its final version before U.S. President Donald Trump can sign it into law.
**Time to cut these parasite shills off and kick AIPAC out of America.
Trailer homes too?
“Sheriff sales, trustee sales — they have to go through this process where they offer the property to anybody who can buy it, including the current owner.”
Noone can afford communist pricing, anywhere, unless they’re on protected wildlife status.
Beau Mont said, “Foreclosures reportedly take place, a maximum of 18 months after default. Now, count the number of months, between each dip in the chart.
Why have you bothered to mention supply and demand.”
I noticed this dynamic, as I was “muscle”. Landlords would have us deliver eviction notices to disagreeable people and later remove all their worldly possessions from the premises, some of which were valuable.
Every so many weeks (you can count it) entire neighborhoods will have realtor signs. Probably, under HUD redlining, a whole side of a street will have the same, assholish paint color (and complexion). Put 2 + 2, together.
That bubble, it pops so rhythmically, that noone would have made a single payment, ever. Then, they all would have gotten extensions, together, fighting eviction, for so long as legally possible. Whole blocks like that.
I’m beginning to see this as an investment strategy, because the infusions are easily predictable.
Winter is always a very slow time for selling a home.
Kids in school, snow, cold, harder to fix up for “sale”….
people more excited to make a change in spring.
There are “good locations” that always demand more just
because it is in a desireable area.
In the 80’s under Jimmmy Carrtter, sellers were
begging buyers to make “any kind of offer”.
If I remember right interest rates were up
to 16%….which meant you had to get it for
next to nothing to break even. At 16% you would
have to pay for it possibly 4 times…longer…
before paying it off. If you don’t mind moving in
during a snowstorm….. winter prices are lower…
if you can find one.
I’m not sure where our economy will be next
spring. But, the way things are going….
I have a feeling you’ll be lucky
to have any kind of house.
Because it looks like we are going to be overunp
by the hordes of “GIMME DAT” invaders…..and
Billionaires buying up everything not nailed down.
Jim and Genius, at least I have a new home in GA to go to when the time for bugout comes. HMM…..will I have to go back soon? We’ll see.
Genius,what state you in? Still looking here in AZ. I plan on writing the chief of the Federal Reserve and ‘thank’ him for raising the rates on me. There was no sane reason to raise interest rates and screw with an economic recovery.Stupid and moronic asshat
Head north young man!
Why is it a home in California is priced 10-20x the price in Kentucky when they are made with the identical materials? Land speculation. This is the genuine issue. You have some inflation of labor salaries but the overwhelming problem is a lack of action to control land speculators.
When you create a situation where the citizens cannot afford home prices then it’s an intentional insidious ploy to foster an artificial illegal aristocracy in our constitutional republic.
This is not merely due to population density and economic forces due to competition. Nope. The state and federal legislators are taking bribes, the bankers and lawyers are scoundrels, and real estate investors swooped in. And I have no sympathy if all of these criminals lose their shirts.
There is an enormous amount of land in the United States. People are foolish and live where it makes zero sense as the climate, seasons, rainfall, and soil will not support agriculture. Then pay outrageous amounts for essentially worthless land in actuality. There is no rational reason to pay these sums of money to live right next door to subversive immoral Democrats who would instantly overrun you and take your firearms and food caches if the SHTF.
I bet a dollar to a doughnut many reading these words could sell their land, move to some quaint quiet Western Kentucky rural area and BE SET FOR LIFE from the profit. So I have zero sympathy.And it’s not just Kentucky as there are places in rural Southern Indiana as well.
Why in tarnation do you put up with it and literally DOOM your children?
You could just as soon speculate from Kentucky, which has some internet connectivity.
The reason people in California might be attached to old land, is not for business, per se.
Onerous restrictions are mainly being placed on new constructions.
Those people are supposed to pay high taxes for concerts in the city park (crappy cover bands) and are only allowed to plant certain landscaping plants. A petty bureaucracy is dedicated to the salt, excreted from water filters.
The unspoken question for me is property tax on my paid-for home (I’ve no debt). This last year – I’m in Florida – there was a 25% increase over last year’s amount due/owed. For me, that was an apx. $400 additional amount I had to pay – from $1600+ to over $2000. I’,m with ‘Jim in Va.’ – “let it collapse; provided that, the county lowers my coming year’s tax proportionately. I know, ‘good luck with that delirious dream’, huh?
Heartless; My property tax is low at the moment but you know what politicians do when they need money. Here there is help for those over 65(ceiling) on taxes. Damn shame you have paid in full for something but can’t afford to live in certain areas due to taxes. When was the last time politicians cut their spending and operated on less?