- US home prices have soared 47% so far this decade.
- The price surge has outpaced the gains seen in the 1990s and 2010s, and is nearly ahead of the 2000s.
- The rising value of homes has coincided with a millennial-fueled demand surge and years of low mortgage rates.
US home prices have soared 47.1% so far this decade, according to a ResiClub analysis of the Case-Shiller National Home Price Index.
The massive price gains seen in the first four years of the 2020s have eclipsed all of the growth seen in the 1990s and 2010s, according to the analysis. Housing prices in those two decades grew 30.1% and 44.7%, respectively.
On top of that, housing price growth in the 2020s is on the verge of eclipsing all of the growth seen in the 2000s, which was 47.3% after peaking at just over 80% before the 2007 housing market crash.
No one in real-estate is doubting it being a bubble. The issue is how it will resolve. Not all bubbles burst. The question is if this one is going to simply “cool down” until the market rate catches up (lol, pipedream) or if the propping up will simply plateau it and it will level off for some years for the market rate the then catch up (almost the same thing, still a fucking joke when they try to justify this). Or there is the option of the bubble popping, it then it is the question of how deep the market cut will go, how fast it will rebound, how far up it will rebound, and if it is still worth it to buy now (what some are saying is that it is still worth doing the current fuckery and still profitable even with a bubble burst).
Even if it burts, what’s stopping investment companies from just gobbling up whatevers left and then repeat the same cycle?
Exactly this. The 2008 bubble bursting helped investors buy cheap. I was trying to buy in 2012 and kept getting under-bid and losing to cash offers from people who just let the house sit empty for a year or two before selling at a profit. The only way I was able to buy back then was finding a house owned by Fannie, which legally could only be sold to someone who lived in it as their primary residence.
The amount of money being stockpiled in the US (and around the world) is insane, so any major drop in housing prices means more investors will just buy it all up. And related: that’s also why I don’t see the bubble bursting. There are still people buying at insane prices with relatively high interest rates right now. There might be a slow down or a slight drop when those people finally get homes, but the bubble in 2008 was from subprime mortgages (not nearly as much of a thing now) and banks not lending (not a thing now). Even if banks got scared and stopped lending, the cash offers are still coming.