Are you ready for the Fed-fueled real estate explosion?

Varmint

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If you've noticed how gold and silver have exploded 50%, get ready for real estate to do the same.

One example of articles popping up everywhere. They never mention the cause, cause they have no clue, but it's the $5 trillion in dollar printing since March, with more coming and no end in sight. Since that money only goes to the top 10% or so, it'll only drive up real estate that the top 10% wants. But that sector is going to explode.

 

ReluctantDecoy

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If you've noticed how gold and silver have exploded 50%, get ready for real estate to do the same.

One example of articles popping up everywhere. They never mention the cause, cause they have no clue, but it's the $5 trillion in dollar printing since March, with more coming and no end in sight. Since that money only goes to the top 10% or so, it'll only drive up real estate that the top 10% wants. But that sector is going to explode.

This might have been an issue had it not already been out of hand since the 2008 sub prime recovery.
 

Varmint

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Whose gonna be left with a job to pay for the government in the cities? They gots dem pensions and dem people dat need da stuffs.
They are negotiating a massive bailout of the failed Dem cities and states as we speak. it'll probably fail but if they sweep in November they won't need the GOP to sign off.
 

new guy

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The $ price of most everything that people actually need is headed up. I've always sort of thought there would be significant downward pressure on RE prices because the baby boomers are inevitably dropping out of the picture but inflation is calling the shots.
 

Mountain

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Wife and I are thinking about buying NH property now to build later. She's a Jeep nut so perhaps a little off the beaten path is ok.

She used to be concerned about real-estate devaluation and would harp on me that we need to sell the big house. I said we weren't selling until it's time to leave Mass. LOL prices are climbing so I was right.
 

Climbnsink

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They are negotiating a massive bailout of the failed Dem cities and states as we speak. it'll probably fail but if they sweep in November they won't need the GOP to sign off.
That only fixes current money problem the pension liabilities and welfare is still there but the jobs and working people have all left.
 

new guy

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The price of a piece of property (or a car, or a standard capacity glock mag, or a crack rock from Hunter Biden's dealer) rising doesn't necessarily mean that the cost of that property is also rising.
 

Dennis in MA

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If we are going to rely on the 1% to drive up the R/E market, we've got a minor problem - there aren't enough of them. So you get a few CA yuppies buying up too-small houses in Montana for way over price. Then what??? You can't have a boom EVERYWHERE without EVERYONE participating.

Funny will be the So-Cal folks having to deal with their first Montana winter. LOL.
 

HARRYM

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Can't see how prices can be sustained much higher than they are now. Many who have purchased in the last year are already realizing they bit off more than they can chew and are "house poor" with zero extra cash to do anything else. They will likely sustain themselves with credit but we all know how that will end.
 

Climbnsink

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Can't see how prices can be sustained much higher than they are now. Many who have purchased in the last year are already realizing they bit off more than they can chew and are "house poor" with zero extra cash to do anything else. They will likely sustain themselves with credit but we all know how that will end.
I agree, but the housing bubble has been expanding far longer than I thought possible. The pop is going to be spectacular.
 

Varmint

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That only fixes current money problem the pension liabilities and welfare is still there but the jobs and working people have all left.
The whole shebang is gonna collapse in a few years so the bailout only has to last til then.

Once the dollar starts going down faster than they can print it, it'll be reset time.
 

Varmint

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The sad truth is, what no one seems to want to realize is that your property isn't worth a dime more; it's just the dollars buying them being worth so much less
That's true in a general long term sense, like how gold doesn't really change in value. But there's also supply and demand factors and right now you have huge supply of printed dollars chasing limited assets - gold, silver and Montana or NH real estate.

So the dollar hasn't lost value yet, these effects are not inflation (yet) it's simply an oversupply of stimulus money finding a home. So the inflation is not in every dollar based thing yet.

Eventually we will get inflation in everything especially if the stimulus goes to Main Street rather than Wall St. The $1200 checks are very inflationary.
 

Varmint

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If we are going to rely on the 1% to drive up the R/E market, we've got a minor problem - there aren't enough of them. So you get a few CA yuppies buying up too-small houses in Montana for way over price. Then what??? You can't have a boom EVERYWHERE without EVERYONE participating.

Funny will be the So-Cal folks having to deal with their first Montana winter. LOL.
It's not just the 1% it's anyone with a decent 401k. It's the 17 state employees at UMass who make over $400k. It's peons who work at a .com whose stock goes up 200x. It's probably 10% of the country benefiting greatly from the Fed printing.

And they're not moving to Montana, they're just buying up the real estate cause they have millions in stock gains. And cause mortgages rates are 2-3%, why not leverage up to buy real estate?
 

Dennis in MA

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those 17 people ARE the 1%. Ditto for the .com gagillionaires.

You think people are going to liquidate 401k's to buy property???? On a scale that will affect property values nation-wide??????

I know a LOT of people. I'm not seeing ANYONE looking to buy R/E as any sort of investment right now. Not in the least. Too soon after 2008. It takes 20-30 years to flush that stuff out.
 
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I would think that there will be a housing crash in the city areas, while at the same time rapid price increases out in the rural areas. People are already fleeing cities and causing prices to drop in many of them. Why would anyone want to live in a city when:
1. High crime, and the police won't protect you.
2. Riots, and the police won't protect you.
3. Riots are destroying businesses, etc. making the former benefits of city life not so great anymore.
4. You can telecommute to many jobs, so location doesn't matter.
5. Prices are already way too high, quality of life sucks, etc.

But, they do have to live somewhere. So, if they vacate cities, that means more houses needed outside the cities. Sure, some will already have their fancy vacation houses. But, for those who don't, they'll be increasing the demand. I'm in rural NH and even the awful houses are now selling PDQ. My next door neighbor's house sold in one day for the asking price, and he was a shut-in who smoked and drank nonstop, and the new owners are gutting the place and rebuilding before they move in.
 

Boris

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I would think that there will be a housing crash in the city areas, while at the same time rapid price increases out in the rural areas. People are already fleeing cities and causing prices to drop in many of them. Why would anyone want to live in a city when:
1. High crime, and the police won't protect you.
2. Riots, and the police won't protect you.
3. Riots are destroying businesses, etc. making the former benefits of city life not so great anymore.
4. You can telecommute to many jobs, so location doesn't matter.
5. Prices are already way too high, quality of life sucks, etc.

But, they do have to live somewhere. So, if they vacate cities, that means more houses needed outside the cities. Sure, some will already have their fancy vacation houses. But, for those who don't, they'll be increasing the demand. I'm in rural NH and even the awful houses are now selling PDQ. My next door neighbor's house sold in one day for the asking price, and he was a shut-in who smoked and drank nonstop, and the new owners are gutting the place and rebuilding before they move in.
The problem is that all those city dwellers (not all of them moonbats) don't want to live in a f***ing country. Suburbs is kind of a better compromise. None of them would be raising chickens or pigs or farm, they just want more space for their shit and they don't want to haul their trash to the dump either. I love to get out to the city on occasion, just not live there and I am not the only one.

So that's why all those city escapees will want more services, trash collection, better roads, clearing roads and other urban shit, i.e. you are f***ed.

I was hoping for the surge in telecommuting, some people have been doing it for decades, but for some work it's not going to work at all. There is going to be backward swing, because most pointyhair bosses can only control their people by watching them sitting in the cube and typing some shit.
 

Dennis in MA

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I'm not convinced the people will leave the cities in such masses as we thought in the Spring. Depends on how fast we get a vaccine. If this lasted YEARS, you could see it happening. But a year or a bit more? People forget stuff AWFUL fast.
 

Varmint

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Can't see how prices can be sustained much higher than they are now. Many who have purchased in the last year are already realizing they bit off more than they can chew and are "house poor" with zero extra cash to do anything else. They will likely sustain themselves with credit but we all know how that will end.
Tale of two markets - those who benefitting greatly and those who got screwed by the government's response to the little virus.
those 17 people ARE the 1%. Ditto for the .com gagillionaires.

You think people are going to liquidate 401k's to buy property???? On a scale that will affect property values nation-wide??????

I know a LOT of people. I'm not seeing ANYONE looking to buy R/E as any sort of investment right now. Not in the least. Too soon after 2008. It takes 20-30 years to flush that stuff out.
You don't have to liquidate your 401k to buy a property, you just need a down payment, and rates are so low the mortgages are very doable for the top 10%. We know quite a few people shopping real estate, 2008? The stock market is up 600%, its forgotten for anyone in the markets.

Just like private equity firms are buying up corporate real estate, there's more than enough cash sloshing around.

Even if it is the 1%, they got more than enough money to drive up prices on every property with a nice view.
 

Varmint

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I'm not convinced the people will leave the cities in such masses as we thought in the Spring. Depends on how fast we get a vaccine. If this lasted YEARS, you could see it happening. But a year or a bit more? People forget stuff AWFUL fast.
Me neither, I think once the useless idiots realize Covid is a scam, they'll go right back to city living.
 
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Me neither, I think once the useless idiots realize Covid is a scam, they'll go right back to city living.
You could be right. The average person is stupid, and at least half of them are even dumber than that.
 

pewpewpew

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I think like most COVID-induced demand, once there is a good vaccine and life has mostly returned to normal, the markets will go slack, and fast. It's going to be a great time to buy whatever your heart desires -- ammo, guns, bikes, real estate, you name it! Anyways, I sure hope that's the case. I still have hope for some day being able to simplify and retire to a more rural area.
 

Climbnsink

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You guys don't understand the power 'rona has entrenched in our overlords. It is never going away, sure there will be vaccines, but you will need one every 3 months, plus they won't be perfect so you will still need your mask, and businesses will still have stupid coded reopening/closing schemes, everyone 6' apart, no church, no Thanksgiving(go look at the CA gov Thanksgiving diktat) etc. they ain't giving up 'rona power until people take it back. And wearing the mask will not get you your freedom back.
 
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