Real estate isn’t supposed to be a speculative asset. Yet we have learned over the years that it absolutely is. People have taken every dollar the banks and lending institutions will give them and bought the maximum they could get. Everything is all good while the market is moving upward. Nothing to worry about. But then one day, something changes. Oops.
You can’t have prices escalating so high and people buying into these homes with maximal debt and not have it backfire. It’s inevitable. Most people would say it’s ok because prices will just come back up. That’s most likely true. However, what they haven’t thought about it how on the way down, people will be destroyed. Happens every single time.
Do you know anyone who went way overboard on their purchase of real estate?
Real estate prices have skyrocketed in some cities, leaving reality in the dust. There hasn’t been this euphoria in the real estate market since the subprime crisis. Today we witness limited pockets absolutely annihilating any precious assumption of how high prices can go. The only question is, who can afford these prices?
How Much Income You Need to Afford the Average Home in Every State in 2018
Mobile home loan delinquencies are a warning sign for the economy – Business Insider
Average Commute Time in U.S. by State and City