Reply to Is there another "housing bubble"?

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]No people buying homes can afford to pay without strange loans[/quote]
But then, why are prices so high?[/quote]

High incomes, good economy. We made 550k last year, 100k more than the previous.[/quote]

But you still havent learned that your experience isnt the experience of the collective?

GDP is flat, wages are flat.[/quote]

Wage growth is up 2.8% YoY.[/quote]

And rents and housing have far out paced that.

Listen, Fed rates have been near 0 for about a decade -- completely unprecedented

https://fred.stlouisfed.org/series/FEDFUNDS

It's clear they were propping up asset prices as for most Americans, housing is Largest component of net worth. Having housing drop after the bubble would have a cascading effect on spending and economic activity leading to deflation and depression.

They have made it VERY clear they will not allow housing to drop again in nominal dollars; they are trying to stoke inflation so that income increases and then housing can return to a reasonable value be income in real dollars. They have had limited success because of all the debt sloshing around, but in a generation things should be back to 'normal' with housing/rent to income.

Considering their skittishness to events or rates and letting stock market devalue, it's clear that extraordinary measures would be on the table if housing 'bubble' popped

tl;dr there are powerful forces allied to prop up housing prices indefinitely; you can't beat them and trying to time the market is a fools game.  [/quote]

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