Will 2008/2009 lows in real estate ever be broken?

T

trader99

It seems like 2008/2009 lows in real esate is the lows.

We might never break that lows again. With unlimited printing and super low interest rates, real estate keeps on rising and will never crash again. Is this a fair statement?

Some of the high end luxury homes have gone up nonstop even during the pandemic.
 
trader99 said:
It seems like 2008/2009 lows in real esate is the lows.

We might never break that lows again. With unlimited printing and super low interest rates, real estate keeps on rising and will never crash again. Is this a fair statement?

Some of the high end luxury homes have gone up nonstop even during the pandemic.
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I don't think we'll ever see those lows again. The cost of materials is only going up. Modular off-site assembly will help using scale for new builds, and I'm not talking about mobile homes, I mean custom builds down to starters ... modular assembly is going to be big across all price ranges. A pure play stock in that sector would be a good one for one's IRA. Its the only way to keep the price 'relatively' affordable based on aggregate incomes.
 
Have you factored in inflation, total cost of ownership (ie bank loan over 25 years), cost relative to salary increase, etc.
It's not as simple as just "the price is higher than it was".
At some point everything is going to implode, no-one knows when, maybe/ maybe not in our lifetime
 
vanzandt said:
I don't think we'll ever see those lows again. The cost of materials is only going up. Modular off-site assembly will help using scale for new builds, and I'm not talking about mobile homes, I mean custom builds down to starters ... modular assembly is going to be big across all price ranges. A pure play stock in that sector would be a good one for one's IRA. Its the only way to keep the price 'relatively' affordable based on aggregate incomes.
More...


I feel fortunate that we bought in 2012 otherwise it would be impossible now to buy the same home. Prices have skyrocketed where I live.
 
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SanMiguel said:
Have you factored in inflation, total cost of ownership (ie bank loan over 25 years), cost relative to salary increase, etc.
It's not as simple as just "the price is higher than it was".
At some point everything is going to implode, no-one knows when, maybe/ maybe not in our lifetime
More...

I get what you are saying. Even if you factored in inflation, home prices have gone up faster than inflation.
 
trader99 said:
It seems like 2008/2009 lows in real esate is the lows.

We might never break that lows again. With unlimited printing and super low interest rates, real estate keeps on rising and will never crash again. Is this a fair statement?

Some of the high end luxury homes have gone up nonstop even during the pandemic.
More...

No. It’s unlikely we will see that kind of real asset deflation again in our lifetime. If anything we will see a significant hyper inflation as government debt causes real money printing.
 
Never. We are are in DFW.
Bought low in 2009. Sold in 2012 for minimal gains because we almost got divorced.
(House is up 75% since then...Plano, TX)
Rented for a couple of years...got outbid for houses for most of 2016 with cash offers.
Finally got a bid in early 2017...but we overpaid by 3% and we knew the homeowners selling. I was trying to wait this out...in a smaller condo. Glad we didn't.
Prices have bottomed in most metro areas.
 
newwurldmn said:
No. It’s unlikely we will see that kind of real asset deflation again in our lifetime. If anything we will see a significant hyper inflation as government debt causes real money printing.
More...

What will happen is the fed will suddenly stand on the break pedal and send the market straight into the ground with several large interest rate increases. Right now, as it stands, housing can only go up because money is so cheap you don't even need to follow the Dave Ramsay "a paid off home is the new BMW" boomer shit since inflation will always be higher than a locked in 2.5% mortgage. It's literally helicopter money. It is currently the best time in history to own a house.

Myself and several people have refinanced into 2.8% and lower mortgages. It's incredible. If you have good credit and you're not a COVID welfare queen you can get one too.
 
gaussian said:
What will happen is the fed will suddenly stand on the break pedal and send the market straight into the ground with several large interest rate increases. Right now, as it stands, housing can only go up because money is so cheap you don't even need to follow the Dave Ramsay "a paid off home is the new BMW" boomer shit since inflation will always be higher than a locked in 2.5% mortgage. It's literally helicopter money. It is currently the best time in history to own a house.

Myself and several people have refinanced into 2.8% and lower mortgages. It's incredible. If you have good credit and you're not a COVID welfare queen you can get one too.
More...

what’s a COVID welfare queen?
Is it a business owner who took 20mm in PPP loans?
Is it a hospital that took 300mm in CARES act money?
Is it a VP of Operations making 150k/year who got a free $1200
Is it a laid off worker getting $600/week (more than they were earning working)
Is it an airline who got 10bn and it about to lay-off thousands of employees?
Is it a restauranteur whose business is shut and got EIDL money?
Is it a business that got 3 months debt payment forbearance from their bank despite having record earnings?
 
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