Fannie, Freddie pump up the bubble again, 3% down is back

[Eric L.]

http://www.latimes.com/business/la-fi-fannie-mae-freddie-mac-mortgage-downpayment-20141208-story.html

3% down government loans will be back for first time home buyers. This should increase the cost of American's #1 expense.

We're seeing the housing bubble that led to the Great Depression play out all over again. This time we already have the highest housing to GDP ratio with the exception of the run up before the previous crash.

[Eric L.]

Originally posted by @Jared K.:

@Greg P. @Eric L. How do you guys see the baby boomer generation affecting real estate in the next 10-15 years? Will it have an affect of over supply for sfr's?

 Just curious on your thoughts or info. Have you seen any recent study's?

 The article that Greg posted was pretty good. My parents are boomers and they retired over the last couple months. They aren't moving and will likely stay with the house until the end. They have an old school pension and won't need to sell. I believe the majority of boomers will stay in their homes as well. Many will stay in the same city for family and many don't want to sell for tax reasons. 

The neighborhood that I live in is 75% 60+ and will likely stay that way for 50 years. How is that possible? Lifespans for humans, (especially those who aren't obese) is increasing.

I honestly believe that the first person to live to 200 is walking around right now. This sounds crazy, but I know a bit about Google X and Google's Calico. If you look at their nano bot project and Ray Kurzweil's predictions, you will see that we are roughly 10 years away from curing cancer/old age with nano bots.

Overall, I believe that the boomers are already causing a shortage of supply which is already a large driver in the market. I don't see this trend changing, but most boomers will soon leave the workforce. They will slow their spending even more. This means more deflation and that leaves a workforce with decreasing wages left to set the price for the homes that are for sale.