Yes. I do think I am the Bernie Saunders of the real estate/mortgage industry.
For those new to my prose, I like to tell what I think, feel and see in the market based on a combination of gut and numbers. Sometimes the numbers talk to me and sometimes the brain just feels that something is going to happen.
I just let it come out and I enjoy doing it that way.
And now to today……..
I’ve seen the basic plateau of the market for about 9 months and now I see my first real proof that people have said, ENOUGH and real estate prices will begin to drop.
Here is how it starts.
This chart on a home on the Upper East Side of New York’s value decline. The example is a premier townhome.
Because of the events of the last year or so beginning with the collapse of oil prices and the Chinese economic slide, we have seen the lessening of spending by those that have had the money. And guess who is next?
Yes, trickle down real estate pricing is alive and well. Because what is it always about? Jobs………..done.
There are so many more people alive in the last 10 years around the world in need of jobs at the same time that the 3-D printer gets better and better. If the later can do what the former needs to do, we have economic issues that cause people to rise up. Not good.
And I digress….
Advice at this point? Be careful. There is no massive fraud issue like 2008, each price decline has a different reason. Buy if you think you’re going to be there long term. Short term, less than 3 years, think twice.
Figure out what closing costs are going to be to sell the home. The $400,000 home you just bought is worth about $25,000 less already. Get a pro to go over all the numbers.