4 ms·
My opinion is that the market may crash or the market may go up. I am going to keep indexing anyway and buying I-Bonds. I already own real estate. Housing is u
by avgDev 5y ago
My opinion is that the market may crash or the market may go up. I am going to keep indexing anyway and buying I-Bonds. I already own real estate.
Housing is unlikely to drop to 2008 levels. Building materials are more expensive, and pay is also up.
- topkai22 5y agoAlso for real estate the debt landscape is different- larger down payments and DTI ratios. Increasing interest rates/mortgage rates are going to drive prices down IMO, but I don’t see a collapse like 2008 because people won’t be forced to sell their homes due to foreclosure/ARM resets and mortgage backed securities are unlikely to collapse. Plus inflation is driving up nominal income, so buyers will increasingly be able to catch up with house prices even if they don’t drop that much. The one wild card I don’t know about is the increased institutional/investor based investing in residential real estate. I’ve got no idea how those deals are structured overall and what a price drop combined with a mortgage rate shock would do to them and what size the overall market exposure is.
- hackerfromthefu 5y agoYes the cost of replacing houses has jumped stupendously. Building new ones likewise.