The next housing bubble thats going to burst...

I have recently come to a realization that there is another real estate bubble thats about the burst. There is currently 20 million+ empty homes in the US and growing. Not only has this destroyed the construction industry but its creating what i foresee as another as another real estate bubble.

Technically the market is regulated by supply and demand? I may be wrong but I'm pretty sure it's suppose to be that way.

Huff Post

Fox Business estimates, there are 18.9 million vacant homes across the country.

Is this another future bubble as more houses become vacant as they are foreclosed on?

The floreclosure crisis isnt even close to done yet i know a lot of people getting foreclosed on and their working.

reply to post by onequestion


The current bubble is student loans. Any future change in student loans in the way of consumer protections is going to completely obliterate the current scam.

Housing bubble has already burst for the most part and once creditors realize that there is money to be made again by giving out loans so people can start buying up those properties as opposed to renting, they will.

reply to post by OrphanApology


But having tens of millions of houses more then people doesnt drive down the cost of housing?

Shouldnt there be a market correction?

reply to post by onequestion


I have read and heard financial talking heads that would agree with you. Some have said the value of homes will drop again as they did around 2008 partly due to demographics and many not qualifying for loans....2014 to 2016 is the favorite time frame for the doom stuff...

I would not buy another house in the states at present because of property taxes which seem to be going up with no end in sight.. But that is just me...

A contractor friend of mine called and told me there was a 2500 SF home with a pool in a neighborhood I am familiar with in N.E. Houston that if I moved I could buy the house for $76,000... Nice house, nice location, and I could put all new carpet in the house and do some wood floors ( I have done that several times ) and turn the house for a profit...carpet, floors and paint could be done for less than $20,000

Thank you very much but I do not want to be tied down with a house that when sold with closing cost, insurance, property taxes and realistate commissions would not leave enough profit to mess with and that's if it would sell? The house sold originally for $199,000.. Used to be you could buy a house and live in it and after a time could be assured if you sold you would at least break even; call me cynical but as things are I do not have the confidence like I once did. 10 years ago I would have jumped on that deal in a heart beat !

reply to post by onequestion


No because the places where these houses are at are places that are having issues with unemployment. The reason there are so many houses is an indication of issues beside housing. When people have the ability they will buy homes instead of renting.

An example would be someone in Detroit where they have the choice to either A. Rent a house for 500 a mo , or B. Buy a house for 25000 with monthly payments of 100 bucks.

Which choice do you think they will take if given the option?

No job=No buying homes.

Example: San Antonio Texas doesn't have any vacant houses sitting around. In fact, during the recession the city grew and new homes popped up everywhere. Construction companies have done well there.

The current student loan crisis would be a better example of a current bubble ready to blow.

reply to post by OrphanApology


How does the education bubble blow when you HAVE to pay it?

reply to post by onequestion


Changes in consumer protections.

For instance, right now you could have a 100k loan and pay only 10 a month depending on your income.

Future changes in consumer protections could spell the whole scam blowing up as well. For instance, bankruptcy protection or regular consumer protections such as it falling off credit bureau after seven years.

Those changes are looming in horizon as the generations that will be screwed by the current laws grow up.

The whole economy of this and other countries is a bubble. It would take just one sharp person to explode it. How did the worlds economies get so messed up within thirty years. I guess everyone was so busy trying to show economic growth that they forgot that all building needs to be done on solid ground.

Nothing to worry about, everything will be fine once the minimum wage is bumped up to 10 bucks an hour and all the people without jobs start up there own business now that they have the time to actually think about it.

Your not looking at the big picture.

onequestion
I have recently come to a realization that there is another real estate bubble thats about the burst. There is currently 20 million+ empty homes in the US and growing. Not only has this destroyed the construction industry but its creating what i foresee as another as another real estate bubble.

Technically the market is regulated by supply and demand? I may be wrong but I'm pretty sure it's suppose to be that way.

Huff Post

Fox Business estimates, there are 18.9 million vacant homes across the country.

Is this another future bubble as more houses become vacant as they are foreclosed on?

The floreclosure crisis isnt even close to done yet i know a lot of people getting foreclosed on and their working.

Ive read Hedge Funds & Private Equity Funds are buying single family homes so the true supply & demand might not be right in this case. They are buying 100's of homes at a time for rentals and crowding out 1st time buyers so this type of action might be schewing housing prices.

IMO - just think house prices are way out of whack - way too expensive. Remember my parents telling me in the early 70's their first house was 30K and now that same house is worth over 300K. My Uncle bought a beach house in the 70's for under 100k and house in now worth around 1 million. Seems crazy to me - gas and cars haven't gone up that much since the 70's.

reply to post by OrphanApology


Is there any legislation or congress members pushing for this change or is this a hypothetical?

The foreclosed houses in good neighborhoods, the ones where someone would actually want to live, are being bought up for pennies on the dollar by investors and brokers. They'll conspire to keep the prices at least somewhat high to keep the profit party going.

A massive amount of foreclosed houses are in neighborhoods like Detroit or Cleveland where nobody wants to live, that's why they're for sale at $5 a house and nobody is buying them even then. Those parts of those cities are dead and will never recover.

The *real* housing bubble will hit when the rich people on the west coast with an ocean view decide that the information about Fukushima is being manipulated and that they're staring at a radioactive ocean; watch the prices go from 5 million to $50,000 in a heartbeat courtesy of a radioactive fire sale.

I would imagine it's already happened to some extent; the smart ones have already got out and moved to South America or Asia; the laggerts are so old they're not worried about radiation anymore.

I saw an article by a magazine editor in Japan yesterday; he stated that he had been in Thailand in business and it was filled with young adult Japanese whose parents were wealthy enough to send them overseas; they were convinced that most of Japan was contaminated and they were setting up businesses in SE Asia, planning on never going back.

There's your Black Swan Global Meltdown - Fukushima plus a massive wrench in Japan's economy plus radioactive clouds and water in a neverending invisible cloud heading for the west coast of the U.S. - kinda ironic considering we bombed them in '45.

onequestion
reply to post by OrphanApology

 

Is there any legislation or congress members pushing for this change or is this a hypothetical?

Senator Elizabeth Warren is pushing for massive economic reforms including lowering the interest rate on student loans to those the Fed and its minions get to take advantage of. That should be an interesting power play to watch play out. There's a reason the ReThuglicans and banking lobbies tried to block her every way they could.

The other one is a foreshadowed by this: Thomas Jefferson was in Paris when they stormed the Bastille; he watched the crowds go by with pitchforks.

And remember he penned these words:

What country ever existed a century and a half without a rebellion? And what country can preserve it's liberties if their rulers are not warned from time to time that their people preserve the spirit of resistance? Let them take arms. The remedy is to set them right as to facts, pardon and pacify them. What signify a few lives lost in a century or two? The tree of liberty must be refreshed from time to time with the blood of patriots and tyrants. It is it's natural manure.

signalfire
The foreclosed houses in good neighborhoods, the ones where someone would actually want to live, are being bought up for pennies on the dollar by investors and brokers. They'll conspire to keep the prices at least somewhat high to keep the profit party going.

A massive amount of foreclosed houses are in neighborhoods like Detroit or Cleveland where nobody wants to live, that's why they're for sale at $5 a house and nobody is buying them even then. Those parts of those cities are dead and will never recover.

The *real* housing bubble will hit when the rich people on the west coast with an ocean view decide that the information about Fukushima is being manipulated and that they're staring at a radioactive ocean; watch the prices go from 5 million to $50,000 in a heartbeat courtesy of a radioactive fire sale.

I would imagine it's already happened to some extent; the smart ones have already got out and moved to South America or Asia; the laggerts are so old they're not worried about radiation anymore.

I saw an article by a magazine editor in Japan yesterday; he stated that he had been in Thailand in business and it was filled with young adult Japanese whose parents were wealthy enough to send them overseas; they were convinced that most of Japan was contaminated and they were setting up businesses in SE Asia, planning on never going back.

There's your Black Swan Global Meltdown - Fukushima plus a massive wrench in Japan's economy plus radioactive clouds and water in a neverending invisible cloud heading for the west coast of the U.S. - kinda ironic considering we bombed them in '45.

The Democats & Republicans seem intent on giving all the illegal aliens worker status or citzenship for some reason probably to prop up Social Security. Have an idea - give them Detroit - enact a homestead act for any of the illegals - will give them a vacant house provided they fix it up to code and live in it for 10 years and it's theirs free of charge.

reply to post by BABYBULL24


Good idea if the foreclosed properties are in the cities where the illegal workers live; might work in Central California and Arizona.

Oh, something else I forgot to mention on this topic - I've been doing research on ex-patting and it turns out that millions of retirees including wealthy 'young' retirees in the 50-ish age group and SS recipients are bugging out of the U.S.; between the cost of living, the ever-increasing heat of the frog pot and the crappy weather in most of the country, they're voting with their feet. And with the internet, they can readily see past the U.S. State Department's horror stories about how bad it is everywhere else compared to home sweet home.

Turns out MILLIONS OF DOLLARS are leaving the US every year and not being spent here, including not on housing. They're selling their houses and leaving further dumping the demand for housing. The generations they are leaving behind are the most underemployed generation since 1929.

reply to post by signalfire


Wow. Good point signal.

Thats crazy that we have so many cities dieing. The places i lived in PA are pretty much dieing too. Really really cheap housing.

reply to post by signalfire


Add it to the 100's of billions were losing due to the WAR that which we do not speak of.

The generations they are leaving behind are the most underemployed generation since 1929.

Your telling me.

If you are talking about housing bubbles its hard to go past Australia.

over here we even given people living overseas a $5000 grant if they purchase a newly built home/unit. the majority of these buyers are from china. some have been found to be buying over 10, 20 units in which they receive $5000 for every unit purchased.

the incredible rise in housing prices has now seen the value of houses within say half an hour radius of Sydney pushed to 1million dollars. for an average house about 1 hour from Sydney you are looking at $520,000 for a 4 bedroom and about $450,000 for a 3 bedroom. it is absolutely out of control here.

the amount of foreign investment here is astounding. the average rent for a house say 4 bedrooms about an hour from Sydney is $480 PER WEEK. a 3 bedroom usually goes for around $420.

in my opinion housing should be a no go for investment. everyone should be allowed to purchase 1 house only. that would allow realistic housing prices for everyone.

in place of housing investment, it should be made just as profitable to invest in infrastructure. the building of roads, transport routes, hospitals etc.

but, alas, it wil never ever ever happen while those in charge own investment properties. they would be cutting of their nose to spite their face.

reply to post by onequestion


18.9 million vacant homes across the country and yet we have millions of homeless.

Instead, why not move those homeless into all those vacant homes ? I know, there are problems but if enough people give their blessings, nothing is immpossible. Punish those absentee landlords, give those who lost their homes back, a trickle will become a flood, let's see how the big govt going to handle this.

reply to post by mypan


Nothing is free in this country soldier!

If we let those dummies live in a house everyone will think they can get away with it and become homeless!