What happened to real estate in 1929?

[Charles A.]

Does anyone know?

🤗

I found this point instructive in the rise of the 30-year mortgage and its knock on effect on historical house prices and the broader economy:

“It was not until the 1920’s and the spread of the automobile that home mortgages outnumbered farm mortgages. In the 1930’s, the mortgage industry got a huge assist from the feds — not from the tax deduction, but from agencies like the Federal Housing Administration, which insured 30-year loans, and, over time, the newly created Federal National Mortgage Association, or Fannie Mae. Before then, the corner bank would issue a mortgage and wait for the homeowner to pay them back; now savings and loans could replenish their capital by selling their mortgages to Fannie Mae — meaning they could turn around and issue a new mortgage to someone else.”

Feds intervention is as old as the mortgage.

And whether it’s the CARES act,endless stimulus checks or QEs,the everyday investor needs to keep himself informed and circumspect before investing in any new asset.

[Claudio Salvatorelli]

Hey Charles,

Amazing topic because right now we are living similar situation with all the pandemics. I found this interesting video NYU REPORT SIMILARITIES 1929/2020

After listening to the video, I have some initial takeouts like:

>Macroeconomics shows similar data to economic data from 1929 to 2020.

>We can describe pre-pandemic / during the pandemic / after the pandemic.

>Technological disruption in 2020 it's similar to the 1929 start of the automobile era.

Cheers,

Claudio Salvatorelli

[Joshua McMillion]

@Claudio Salvatorelli

Interest insight into the historical patterns. The significant difference from 1930 to 2020 is the rise in disruptive technologies that have created working home more viable for families. Not all can take advantage, unfortunately, and there will be ramifications on the amount of stimulus the FED is pumping into the economy. That's why it is more important than ever to establish CCC and purchase smart.

Specific, measurable, attainable, relevant, and time-based.

Sincerely

Josh

[Claudio Salvatorelli]

@Joshua McMillion

I agree technology is playing an important role in working from home (most of the people). Now homes are a place to live and work combined.  Great point that the goals you set are aligned with the five SMART criteria.

Cheers,

Claudio Salvatorelli

[Cody Benedetto]

Super interesting, thanks for sharing! It's worth noting the changes in lending requirements. Even in the past several decades we've seen massive shifts in loan accessibility/qualifications. Now, anyone with a smart phone or a computer can get pre-qualified in less than 30 minutes without even speaking to a human being. Restrictions and barriers have gotten tighter in some areas and widened in others. We're living in some wild times. Your post really puts the changes into perspective.