It was just reported by the mainstream financial channels, that existing Home sales fell more than expected.
We also found out that mortgage applications fell off of a cliff, and the median price for a home has also fallen.
The mainstream narrative, and they are pushing this as hard as they can, is we are seeing existing home sales fall, mortgage applications drop, and the median price for Homes also fall, because there is not enough supply of houses on the market.
Let me ask you, if you have even the slightest bit of commonsense, does any of this makes sense to you?
Of course it doesn't.
The fact of the matter is housing is in a major bubble, and the truth behind why we are seeing existing home sales fall more than expected, mortgage applications plunge, and the Price of housing drop, is because we are witnessing not just a top with regard to the housing market, but cracks in the bubble.
I have been warning people for the last couple of years as a matter fact, that housing is in a bubble.
With regard to housing, it is very simple to recognize that we are in a bubble.
How can we recognize the housing bubble? Simple.. Housing is no longer affordable to the average person making an average salary.
In summary: The reasons why we are now witnessing negative statistics across the board with regard to housing, is because we are seeing not just a top with regard to the price of housing, but cracks in the bubble.
Gregory Mannarino
You are a lion!
That is funny man!!!
Reminds me of someone in the old Gregory Chat room... lol... And yes, I can still post my thoughts in his old chat room...
@pocketechange
lolllll!!
I'll be 47 in a week and it appears I will never own a home (except maybe a tree fort in the woods WAHOOOO)......Rock On / STEEM On Brother Greg!!
He is right wait for the crash ..
And I am 57 and have a house and don't want it lol..
To much work ...so rented it out.... let someone else pay for it and mow the lawn..
Moved on my sail boat ... no lawn to mow now lol..
Now just sittin' on the dock of the bay
Havin a good day sittin' on the dock of the bay !!!!!!!
R u sure you are doing it right .. Life looks good from here...
i can't believe a sailboat is easier and cheaper than a house. all the ones I've ever met who had a boat said if I ever wanted to know what it felt like owning one to just shove money down a drainpipe and splash some water on my face.
Yup bring on another thousand BOAT
But we are at the point that having that house and piece of land will now cost you more than a life time of labour ... At this point I am not willing to spend my entire life servicing that debt and spending every weekend mowing and fixing ...
2000 for mooring pin
20 thousand for 60' sail boat ...got a good deal...
10 thousand to equip with solar and wind power
Monthly bills 0 now that i have paid for it
2000 every 3 years for haul out
Fuel beer women my ford pickup and 5th wheel parked at the lake where my buddy keep his jetskis the rest of my money goes to this lol😎🍺
Not retired yet but ready to lmao👍
You understand economics and life so well.
Or buy a home after the crash ;)
They'll all be "shotgun homes" or "crack houses" after the Crash. Gutted-out deathtraps as people both ransack them for anything of value and tear up what's left in frustration.
You are saying that every single house that was sold after the crash of 2008 was a shithole? I don't believe that.
And even if every single place was a shithole, the land, a certain neighborhood and the house after a renovation would still have made it a good investment.
Let me clarify: inner-city homes, where most of the people that argue with me base their "real estate can never go down" arguments. I have read online several times about unrepentant city councils that keep property/land values high, despite their unworthiness and high crime rates in the area. Take Detroit. Take Baltimore. We're talking about more than just single renovations needed, but entire neighborhoods.
If you can buy a well-kept house after the Crash, my hat is off to you. But the odds are against more than a handful of success stories.
I'm 26 and also doubt I will ever own a normal home, but I am pretty certain I'll be able to pick up some land and a bus after this all blows up.
My wife and I recently embraced the tiny house movement and moved into an RV and are traveling the country seeing beautiful things and meeting great people.
That's great! I have wanted to for years now. Many people are living the life here in Colorado, and after this lease ends in October I plan on joining.
It takes some getting used to, and a lot of downsizing... But it's totally worth it. The one caveat is that there's so many folks embracing it that you need to plan far ahead in order to find a spot. Unless you're boondocking.
Ideally I'd like to buy some land for a home base, but until then we will be roaming lol. We'll see where cryprocurrencies go this year, fingers crossed!
Indeed! We'd like the same thing. Maybe start up our own RV Park, but still continue to roam.
Forget the bus 80% of the planet is water ..go sailing lol
Plus the ladies will find you more attractive ...True I have seen it ..
Woman seeking men with boats ..please send picture of boat..
That is a very good point, and it would make eating a lot easier. Sadly, I have a lust for land. I would love to spend some time on the water, though.
Where on Earth is your favorite place to sail so far?
Only sailed around the vancouver island area .. But always dreamed of fiji ... Retire in 3 years and you never know ..got some pics of my boat on my blog ... So until then spit polish and paint
You'll probably be better off with that in mind!!!
I see on linkedIN, the realtors pushing a healthy, thriving market. I am posting your stuff on there hoping they will wake up and protect themselves.
Realtors have to keep the charade going because it is how they make a living. If they do not sell they earn nothing. They did the same thing at the top of the last bubble.
That is crazy Greg. So basically, there is not one ounce of truth and dignity. That is really sad. I hope some of them heed the warnings.
Exactly, they'll never tell you the truth until after the fact!
Sad, how markets are propped up on total deception. They are in for a rude awakening, unless they wake up and do right.
Most of them do not know anything about the subject. The whole fiat dollar ponzi scheme is unknown to most realtors. And most people as well.
That is insanity. Wow, its unfathomable. Sad and disheartening.
how about some return love from a vegas youtube follower since the beginning. thx greg
I'll follow you... I'm also a long time Las Vegan with very deep roots in this hot, dry desert...
@pocketechange
cool. gbtc on the RISE today. omg
Been waiting for some kind of correction in housing for awhile now before i buy my first home. I'm tired of renting!
thanks for the update
Renting isn't such a bad thing when you're starting out in life... I just paid $8,000.00 for a new air conditioning unit... Renters aren't responsible for those unexpected costs...
@pocketechange
true, but i did the math the other day and I've paid over 20k in rent the last few years. would've Been a good start on a house
Agreed, my brother and I rent a 2 bedroom for $1,800/ month. This will be the last time I rent, I'd rather dig the van life.
A home warranty will cover a big ticket expense like this. They bilk you over time, but if you don't like the huge expense hitting randomly then this is the way to go.
Thanks... I'm now one of your followers... @pocketechange
I just spoke with a realtor who is a friend yesterday and she mentioned how great the market was but then she choke explaining the how. Thank you Greg, keep up the good work.
I think the only reason there is an inventory shortage is because a lot of people who got their head ripped off the last time realize it's a bad idea to sell your current home and try and upgrade what you have when values are so overblown. Even selling, pocketing the profit, but then being faced with paying overvalued rent is hard to make sense of right now.
You are correct.
The inventory shortage is in the market under 500,000 as near as I can tell!
Completely agree Greg. I've been blogging about my observations on this on the ground here in Australia.
Yesterday I photographed the the desperation of vendors during a 15 minute walk in the suburbs.
Earlier I wrote about the saga suffered by the owner of the property listed for sale over the road from me.
Here I discuss the culture and religion of property. The gap between the narrative and what you can see happen before you is now very wide.
Greg Hunter and Rob Kirby
Rob Kirby-Rising Crypto Currencies Means Crash Near
Great Interview, I have entered the crypto market!
Congratulations @marketreport!
Your post was mentioned in my hit parade in the following category:
BMO and Wells Fargo are putting out CDOs. It feels like Deja vu.
I closed my account with Wells Fargo 4 or 5 months ago...
@pocketechange
OH NO!!! I'll have to tell my parents to sell :(
Americans can afford housing. If they spend 40 years working to pay for it. Spend half their life working for some concrete, sticks, and drywall so they can have a place to die after that. The American Dream has become a nightmare.
More bad news, the markets will probably go up again. Go figure.
Out where I'm at, the stix of rural GA. inside of a golf community, houses are being built and sold before being finished for the inflated sums of $400,000 plus...... I get the nonsense on the idiot box but there are people buying houses and in my neck of the woods regularly and not cheap ones. I also believe that there is a ton of inventory out there that is not being released onto the market making the available inventory very small. If they did it would IMO crush this market. We've all seen the "bank" owned ghost neighborhood stories across the U.S. I also don't believe that there are a lot of people who can qualify for mortgages these days hence the gimmicks of 05' and 06' returning. I get that the common man is in trouble but for this to have happened someone had to gain. Ask yourself this... For that one of many now billionaires, how many people are in dire straights due to his/her success? Lots of people around the world had to lose for his/her success to happen unless your the fed and can just print your own fiat. For one to gain one loses. I was lucky to be where I'm at, buying after the crash and not, at present, being under water. I know many weren't so lucky and have had very hard times since. It's a sad state of affairs when the ones that have so much care lil' for the ones who have nothing and there only concern is "more."
All I want to know is where the frick are they getting their money from to buy these houses? Or have banks gone down the self certified mortgage route again (self certified where you tell them your earnings without proof -happened in UK)
Beats me, I would assume that it's through Market gains since it's done nothing but rise into the largest bubble EVER. I also assume this due to the area that I'm in is a huge retirement area for the wealthy. With this being said I live among them in their neighborhood where the houses are being built and selling regularly as of late. With that being said, there are lots of places for the "servants" ie me and many others to live outside of these expensive neighborhoods but they're renting mostly. There are also quite a few neighborhoods that were starting to develop when I moved here in 07' for the "help" that have not been touched and remain unfinished to this day. I looked into these neighborhoods when trying to buy back then thinking I'd never be able to afford to be where I ended up and the difference in price then and now is majorly underwater for someone who bought back in 07'. I feel for those people. The people around me are heavily into the paper markets IMO and if it crashes they'll be in a world of hurt all over again just like the last crash.
I am a mortgage loan originator. They can get their loan from me. It is very difficult to get a mortgage right now. Income and assets documentation is very strict.
We live in some scary times and most people dont even want to know how one single financial asset works. Sad!
How much longer do you think their charade will continue before the bottom falls out again? I'm thinking of selling my home and taking my money and run.
Great heads up Greg, I'm waiting actually for the price to TANK. Then I'ma going to cash in some silver and buy a small farm.
Seriously....
If you consider the real value of our so called Dollar, you'd have to realize that the price of a House is very inexpensive... It's better to spend those worthless dollars on something real like a house... I'm not falling for that Housing Bubble Myth...
@pocketechange
I know it is hard to understand, or see that there is a bubble. Very few people were able to see it last time either.
If I had to choose between a house or a bunch of worthless dollars, I'd choose the house... On the other side of the coin, if you do sell your home and buy something like Silver, it wouldn't be so bad, but I sure wouldn't want to be holding on to those dollars... Especially not in a Bank...
@pocketechange
I agree with you there...Rather have my money in a house than in the bank.... Everyone needs somewhere to live!
But with that said, I think that some houses are massively overpriced. I have been level headed with mine and have gone for something which is relatively cheap
You wouldn't believe how many letters I receive in the mail from people wanting to buy my house... Why do they want my house so bad...??? There's no way I'm selling my house...
I refuse to be scared by a so called Housing Bubble, so they can buy my house cheap and with dollars that are about to crash...
How is there a bubble when you cannot build a house for what they are now selling???? The cost of labor and material prevents home builders from lowering prices. I do not understand? I believe the prices will come down only because people are not making dollars. If Pres. Trump fixes the economy maybe eventually Americans will start prospering again and demand for housing will become normal.
What say you?
While I agree getting rid of your USD is better than holding, using them to purchase something that is over valued isn't using them to their fullest...
Lot's of other places to put them that are undervalued...
Ask yourself what you could sell a house for in the USA if the buyer had to pay cash, it's coming....
I have a funny feeling the Banking Elite don't want any of us to own our own house... Sure, they can print as many debt notes out of thin air they need to buy up everything worth owning... We'll be left with worthless debt notes and they'll own all our houses...
@pocketechange
I love you Greg, but you're a little late to the party on this one!
How? I have been warning of this for years?
Touche
In spite of all this, do you still think the FED will raise rates in June?
Thank you for confirming how I have felt about it for the past year.
Well, that explains why PMs are so cheap - there is not much of it around. Yeah, right...
Man, what a screwed up world it is we live in. No satire writer could come up with stuff like that. And we are told this is "reality".
satan's world IS reversed.
We live in a rabbit hole where the crazy makers alter the fabric of reality !
You don't think the next housing statistics report will show a miraculous recovery in mortgage applications and home prices?
Wait until the interest rates start moving up in earnest, the cracks you are writing about now will become canyons!
I have been able to get around the cost and purchase a very small ranch home in a small town. However to do this I had to choose not to have children in life and was blessed with a small inheritance from relatives that were only children. One should not have to forfeit children to afford to pay for housing. The cost is out of line and over the roof. I think of those who have children or large families and do not have the insulation. They want to keep us poor and control population birth at the same time SHAME ON THEM. Thanks Greg Keep up the great work.
thank you Greg
If a boat continues to fill.. who will be the last ones to abandon ship?
I guess you're trying to give us a life raft?
Bubble? Say ain't so.. Seems like everyone I know is getting into real estate to try and flip a house.. Reminds me of not that long ago!
Exactly.
Well if anyone tries to tell me everything is ok, I'll be 'flipping' something of my own at them:
+1
Housing is so expensive here in Colorado that squatting on BLM is an acceptable lifestyle choice. :-((
I'm gonna buy a campo van and just drift like the 'littlest hobo'.....
"There's a voice, keeps on calling me..."
Sounds like a plan... You can flee from the City at a moments notice and get yourself to a nice lake or stream...
@pocketechange
thanks for the info, Greg!
Well, my landlord is selling the house I rent and I am worried about losing my home, so maybe this will scare off potential buyers. Of course, on the other hand, my landlord is a bit of a jackass so, as long as the person buying is an investor, it would be great to get it over with.
I agree with you in some part of the country, but where I live this isn't the case. There is a legitimate house shortage as big tech companies are moving in and expanding (ie adobe, oracle, IMB Flash etc.) There are houses going up all around us and they don't stay on the market for more than 2 weeks. So if prices fall then yes that is a signal, but prices here are only going up, and people are still able to buy them. Time will tell though!
Those greedy bankers are going to take us down again. This time we have to come up with a better system that doesn't involve a disaster every 7-8 years!
@digestingreality
There not going to take me down!!!! (well not without a fight at least!!)
I agree I am the same way. I am ready to fight if I need to fight but I hope it doesn't come to that! DR
No worries. The Federal Reserves PPT will keep things propped up no matter what.
So much for CNBC & Bloomberg opinions for anyone that actually looks and thinks about what's REALLY going on.
In my neck of the woods, practically every fifth house is up for sale or rent now. These are largely retirees living in the higher-priced home market. Why the sudden rush to sell?
But on your point that the job numbers are highly suspect, I would agree. Jobs may be "up" because wage earners now have to work two, or more lower paying jobs after getting laid off from a full-time job with benefits. But that doesn't portend a robust sellers market for now - if ever again.
As well, and perhaps most ominously in the evolving future, robotics and AI replacing a growing number of workers will negatively impact this market immensely (IMO).
Diligently follow your analyses Greg. Thanks for being here on Steemit!
Very interesting Greg...Thanks
Great analysis! I recently advise a friend to hold off purchasing a home - looks like prices may be coming down
get the money printers out!
I think the inventory is low because banks don't want to let go foreclosed homes all at once it would kill the price at market. There are many weaknesses going into the economy that are hurting the housing market. The first being millenials which are at a multi-generational high of living with their parents. That of course being due to two factors college debt, and jobs. Boomers have homes, but not that many people to sell to. Also retail which is 16% of economy is falling hard. The second boomers are retiring and attempting to mostly downsize. The run up in homes have been by banks and foreign buyers and there has been movements by the chinese goverment to stop money flows out of their country.
I am a Mortgage Loan Originator in Richmond, VA. In and around the city we are seeing multiple offers on homes that have been listed for 1 day or less. We are seeing home buyer's waive the appraisal contingency and pay a higher price than what the home appraises for. But also we are seeing origination's dropping in both volume and units. The refinance market is completely dried up and this is what is truly hurting loan origination growth. The only way to make up the difference lost from the refi originations is to have a strong purchase market. And this is going to be difficult for the cartel to drum up with wages stagnant, inflated home prices, and higher interest rates. Something will have to give in order for us to be able to originate more fiat dollars into the system. Applications are also down across the board right now. I hope this is helpful.
-John
I WOULD LOVE TO SEE HOUSING BUBBLE POP...WANT TO BUY A HOUSE ALREADY SPECIALLY IN HAWAII WHERE ITS SO EXPENSIVE HAHAHA LOL
Exciting time!
One more time... The Banksters don't want you to own your own home... If they can Manipulate Gold and Silver so they can buy it cheap, what makes you think they can't do the same with Housing...??? They want it all Gregory... They know the Dollar is crashing, so they're buying up everything for the least expensive prices... You wonder why Mortgages are so hard to get now... It's not that people don't have good Credit, it's because the Banks are in a Buying Mode... By the way... I posted a new blog titled "What... Another Post...???"
@pocketechange
So this means that housing will be cheaper in the future Greg. Or will they up price something else to squeeze that last drop?
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Thanks for the info
I felt so desperate about missing out on getting a home in the last crash - not because I missed out on "making money", but because rent got so expensive at my apartment. I feel like a miser wishing for another crash, but am so sick of living in my apartment!
Can't wait for time when everybody can afford a house. Especially our children.