Home prices hit a slick $1,000,000, while soaring office rents blow up enterprises with real business models. It’s crazy. It’s powered by hot money from around the world. Then comes the moment when the hot money evaporates.
Buyers from China are the most prolific, spending 72% more than a year ago! On expensive homes. They benefit from the devaluation of the dollar – according to the NAR – and are desperate to get their money out of China.
FICO: “That doesn’t feel like a healthy, sustainable growth situation.” Lenders fret “about the risk in mortgages” as consumers return to “reckless borrowing.”
by Wolf Richter • • Comments Off on How Wall Street Manipulates The Buy-to-Rent Housing Racket
The smart money had a goal, which it now reached via the “multiplier effect” by which a small number of sales can have extreme consequences in price for the rest.
by Wolf Richter • • Comments Off on Real Economy Bites Housing Bubble 2
When the home-sales curve kinked south last fall, soothsayers had some handy reasons. And it would be temporary. Month after month, they came up with new reasons. Now they’ve used up all the good ones, but sales are still tanking.
by Wolf Richter • • Comments Off on Housing Bubble 2 Already Collapsing for the 99%
This is precisely what shouldn’t have happened but was destined to happen: as prices are soaring, only luxury home sales are growing … 1% of the market! Something has to give.
by Wolf Richter • • Comments Off on This Chart Is The Fate of Housing In America As Student Loans Bankrupt A Whole Generation
The equation might not have gone so horribly awry if each class of graduates had seen their incomes skyrocket in line with their student debt. But that’s a crummy joke in America.
