Reply to I think the bubble is popping.

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]Some folks are desperately waiting for bubble to pop but its not happening.[/quote]

I wonder how many of the people are the same year after year?  I'd wager most people that were waiting for a crash gave up and bought what they could afford or moved out of the area.  I'm sure there are at least one or two people on here that have been waiting for the big crash for 5+ years and not bought though. [/quote]

Some, but just remember that the population of the Washington Metro region is still expanding and it is growing faster than the housing inventory anywhere EXCEPT the exurbs.  So, there is no bubble.  There is just a situation where you have more buyers than there are available properties and that is not going to change; it can't change as long as people keep moving into the area faster than people are leaving the area.

Those who are trying wait for a bubble are just going to find that they are only delaying the inevitable.  They will ultimately have to decide to stay where they are, spend more than they want to, or get less than they hoped for.   
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Yes there is a bubble. If interest rates were market based they would be 7 percent minimum. The Fed has pumped the bubble so huge in stocks and housing that now they can’t even raise rates 1 or 2 percent without kicking the foundation out from and popping the whole bloated and misallocated mess.  They just talk about tightening but will never do it. Savings is the proper foundation of a healthy economy. We have replaced saving with a printing press. It’s a ticking time bomb.[/quote]

Quite the opposite, you've got the mechanics all backward.  If the Fed didn't buy up assets like stocks and housing, then the pandemic would have made those assets much more risky.  That would have led to a flight to lower-risk assets (Treasuries), pushing interest rates even lower.  In much of the developed world, you can get things like home loans for even cheaper than you can get them in the U.S., even for 0 interest.  If the Fed had not been very active in setting up a backstop at the outset of the pandemic, interest rates likely would have collapsed even further, and there's a good chance that we would be in a deflationary spiral that could be very damaging and last many years (see, e.g. Japan).[/quote]

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