Signs of another Real Estate Crash

[Alexander Roeschmann]

Just a short info I could acquire and I'd like to hear your thoughts on how deep and close to a crash we already are:

Wells Fargo & Co WFC.N stop accepting home equity lines of credit given economic uncertainty.

For me this seems to start just like it did between 2006 - 2009 housing market.

Alexander Roeschmann

[Joaquin Camarasa]

@Alexander Roeschmann I personally think that there will be a drop in prices in the next 6 months to a year. Depending in the area, the impact will be different. If prices have not gone down much yet is because supply is very low in some areas.

As you mentioned in a comment above, the risk of hyperinflation is real long term as the fed does not stop to print and it looks they will keep printing. However, short term 6 months to a year, as we get out of Covid, psychologically, we are all going to be hesitant to spend, plus unemployment is not gonna magically disappear either. It will take time to get back the confidence to spend. The fed can print as much as they want if people is hesitant they will not spend hence reducing the velocity of money and probably tanking the economy.

Summing up, I think the article is on point.