Is real estate going to drop more?

OF COURSE IT IS.

Well lets think about this. Interest rates at an all time low means house prices and corporate real estate prices are at an all time high. Less interest means you can afford more house or more commercial property right?

Then we need to tighten up the lending standards because reckless lending got us to a point that almost (and still may) blow up the global economy. People will need more money down meaning they won’t be able to afford as much house, on average.

So Rising interest rates along with tightened lending standards and what do you have? Falling real estate prices.

Never mind the fact that comparative rents are still 50% of the equivalent mortgage amount in bubble areas and the fact that incomes are flat to dropping. or the fact that new home buyers are becoming exhausted and the purchase credit is expiring.

Gargamel

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• I was recently in China, real estate prices are absurdly high.
• NOW it is America’s TURN to Break up TOO-BIG-TO-FAIL!
• Rising stocks come at the expense of a dying dollar.
• It’s Still A Terrible Time To Buy: Falling House Prices Are The Solution, Not The Problem

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