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Thread: Why The Housing Market Will Crash

  1. #1

    Default Why The Housing Market Will Crash

    This is a bold prediction I love Real Estate (Commercial). However the housing market is doomed, what will happen, whether that be in 5 months from now or in 5 years from now it has set itself up for a major collapse. Now all the savy hot residential real estate agents of course still say that it is hotter than ever, nevertheless you must understand that they are lieing to themselves because that is how they make profit. The Market is going to crash because more than 1 out of 10 houses on the market right now everywhere other than in New York City has been bought as an investment. These investments are the people’s largest ownings. With the increase in intrests rates people will not be able to renew their mortgages, this in turn means that they will need to sell their house because they will not be able to pay their mortgage. When they sell their house, or it is taken by the bank, the house will be sold for much less than the market value in their neighborhood. This requires the other people in the neighborhood to lower the price of their house, so in turn it starts a downward spiral. This downward spiral will start slowly and then it will finally happen so quickly, this is when the big bubble is going to burst. When something goes up, it has to go down. We have seen it throughout History the rise and fall of great empires, the Tech stocks, and next will be the Housing market.

    What are your thoughts?
    Last edited by drlikuid1444; December 6th, 2005 at 09:44 PM.

  2. #2
    Disgruntled Optimist lofter1's Avatar
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    Default

    Quote Originally Posted by drlikuid1444

    What are your thoughts?
    You might want to check your spelling ...

    As for your "predictment": jeez, louise, I don't know what to say, 'cuz I don't know what the heck a "predictment" is!

  3. #3

    Default

    I agree, but I wouldn't have said it like that.

    Also, what's the definition of "crash". I mean, I sold my apt because I thought the market was over-bought (and the place was too damn small), and I expected prices to drop. But, "crash"? Will you know when the crash has happened, like, while we're crashing? Or, will you know that a crash happened, once were in a recovery (and, it would be hindsight).

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