Real Estate market continues to deteriorate. A good article from Bloomberg. Housing Falters as Forecasters See U.S. Sales Dropping
“The big housing rally wiped itself out because prices increased too quickly for buyers to keep up.”
What happens next?
There are three primary lines of thought out there. First, the bottom in the real estate market was set back in 2010. There is a shortage of real estate and the real estate market will continue to surge higher for many years to come. Although it is incredibly overpriced. That is the view that Blackstone Group has.
Second, yes the real estate market is going through a bit of a slow down, but it will recover within a relatively short period of time or as soon as the US Economy catches fire. This is the primary view of most people on both the Wall Street and the Main Street.
Then there is my view (that very few people share). That view clear shows that what the real estate market has experienced over the last 4-5 years was a “Dead Cat Bounce” in the overall secular bear market that started in 2006. Further, it suggests that the real estate market is rolling over as it begins it’s stage 3 massive decline. You can read all about it in my comprehensive report Real Estate Collapse 2.0 Why, How & When
