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RE: The Housing Bubble Is Cracking (Again). By Gregory Mannarino

in #money7 years ago (edited)

So much for CNBC & Bloomberg opinions for anyone that actually looks and thinks about what's REALLY going on.

In my neck of the woods, practically every fifth house is up for sale or rent now. These are largely retirees living in the higher-priced home market. Why the sudden rush to sell?

  1. Taxes & insurance are going through the roof. Maintenance costs as well. People are trying to scale-down their lifestyle to a more affordable level.
  2. Income, if not diminishing, is doubtful for the long term. Is this administration going to "Make America Great Again?" Is the opposition going to let it? Is there enough TIME before people go broke holding on? What about pensions/retirement funds/social security?
  3. Interest rates are going up even as sites like Zillow claim property VALUES are up at the same time. How long will this conflicting trend continue.? Are buyers buying or negotiating prices they can afford?

But on your point that the job numbers are highly suspect, I would agree. Jobs may be "up" because wage earners now have to work two, or more lower paying jobs after getting laid off from a full-time job with benefits. But that doesn't portend a robust sellers market for now - if ever again.

As well, and perhaps most ominously in the evolving future, robotics and AI replacing a growing number of workers will negatively impact this market immensely (IMO).

Diligently follow your analyses Greg. Thanks for being here on Steemit!