Home prices 'will see big declines in coming years,' expert predicts

Robert59

Robert59

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Now I live in Tennesee. Did live in Michigan.

Home prices 'will see big declines in coming years,' expert predicts​

Despite four straight months of record-breaking increases, home prices could end up reversing course in the next few years, according to one expert.

“There is a chance that we will see big declines in coming years,” Yale Professor of Economics Robert J. Shiller said on Yahoo Finance Live. “I think people are anxious about that at this point in history.”

https://www.yahoo.com/money/home-prices-will-see-big-declines-in-coming-years-225857861.html
 

I have been sitting on the fence about selling. Prices here have skyrocketed.

Trouble is "where you gonna go" is the catch phrase. A nice apartment with decent rent around $1500 is almost non existent and a 2 bedroom luxury apartment is upwards of $2000 month plus utilities. And with landlords picking and choosing. I swear some will take a bribe.
 
Housing prices will continue to rise, or remain high, so long as this Covid pandemic causes shortages of new homes construction. Lumber has been in short supply for the past year, and prices have soared to ridiculous levels....and are just recently starting to come down. That, combined with thousands of construction workers losing their jobs during the pandemic has driven new housing Supply sharply down, and the prices on housing sky high.

Until society returns to a more normal level, and this virus becomes a minor issue, housing will continue to be abnormally expensive. Until If/When...probably 2 to 5 years from now....Supply begins to catch up with Demand, there will be little relief.

And...when housing construction picks up again, those paying todays high prices for houses, may find that their Equity Value will drop such that it will take years before they can sell and regain the price they paid.
 
There is increased demand because our population continues to grow. Covid hasn't helped either. There will always be times when supply out places demand, and prices will tend to fall, but these are pretty temporary. The 2009 bust wasn't over production as it was the financing of questionable exotic loans, which went belly up. That caused mass evictions, leading to a glut of vacant homes. Hopefully it won't happen again, but considering human greed, it probably will.
 
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Seems like every time I have tried to predict the market I have ended up wrong. If you really believed prices were close to collapse then selling and moving into a rental, even an overpriced one would make sense. You could buy back when prices go down and make a killing.

If I tried that I can guarantee you prices would not go down and I'd lose my shirt...
Aunt Bea said:
In forty years today’s prices will look like bargains.

In the short term some people are likely to get hurt.
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Absolutely!

Problem is as we age it gets harder to hold out for the long term. We have to be more short term oriented...
 

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