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>People were saying the exact same thing before the crash in 2007. People were buying overvalued homes they couldn't afford in the middle of nowhere on subprim
by aphextron 9y ago
>People were saying the exact same thing before the crash in 2007.
People were buying overvalued homes they couldn't afford in the middle of nowhere on subprime adjustable mortgages, which caused the crash of '07 when the ARM rates kicked in and they couldn't afford payments. This is a fundamentally different situation.
Now, a very small number of elite highly wealthy people from around the world are treating American housing stock as their investment vehicles since there is literally no other better option in 2018. Where we go from here in terms of affordable housing, nobody knows. But I really really doubt we're going to see a housing crash any time soon. It's just simple supply and demand.
- tehlike 9y agoI dont have much knowledge, but i hear asian buyers investing looked similar to japan investing in 80s.
- halbritt 9y agoIn the period after the downturn and just before the market started to tick up in mid 2012, there were a number of Asian investors buying up large swaths of foreclosed and distressed homes in Oakland for cash. I recall this specifically, as I was in the market for a house at the time. Fortunately, I didn't face much cash competition as I was shopping slightly upmarket. The line seemed to be $300-400k. Those folks would be seeing pretty good returns at this point as those houses are now typically worth $500-600k and might be renting for $2-3k.
- refurb 9y agoDo you have a source for foreigners "treating American housing stock as their investment vehicles" and that driving up prices? That was the complaint in Vancouver until they actually started tracking foreigner purchases and it turned out it was 10-15% of purchases (higher in certain neighborhoods). That means the other 85-90% of demand was from Canadians.