Quote:
Originally Posted by Brian.
Honestly, this all feels like 2007~8 again to me, where things cost too much and it just feels like a "too good to be true" situation. We haven't gotten to the end of the mortgage and rent forbearance yet, I expect that'll be the start of the correction process.
So, I see it more like, if you're in a situation where you have something sitting around that you can SELL and cash in on this bubble, you might want to consider doing so. Personally, I have a feeling that 12~18 months from now we're going to see a lot more struggle. Buying anything right now, again based on my personal speculation of what's to come, will be buying at the top end of the market and whatever you've bought won't be worth 2/3rds that price in 2 years.
|
I don't think housing will correct hardly at all this time around though. Check the price of lumber. It's over 3x more expensive than it was at the peak of the housing craze in 2005-06. That means that builders have to charge more for their homes to keep the same profit margin, which they will. This will also tighten the already tight supply of inventory on the market, which is what we've seen now for over a year.
I don't think we are entering a period of hyperinflation where we will be taking wheelbarrows of cash to buy groceries, but inflation is very real right now. Any physical asset is going up in price very quickly, which includes vehicles. At least over here in CA we've been used to $4 a gallon gas for a few years already.