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User Info 2021: The Year In Review, And A Wee Light In The Tunnel; entered at 2021-12-27 07:58:13
Posts: 593
Registered: 2020-07-25
tickerguy wrote:
Housing, as a bubble, is done

I agree. The form of its collapse and what locations will take the biggest hits is a topic for further discussion. Clearly, higher interest rates will damage housing prices. Building materials may continue to increase in price due to inflation but will likely fall when new construction slows as interest rates rise.

I recently moved from CO to FL. I was tired of shoveling snow and CO politics were clearly moving in the wrong direction. I debated renting long term in FL. Rents are ridiculously high. Unremarkable one bedroom apartments are over $3000 in some places and supply is low. What I found most interesting is that apartment rental prices change on a daily basis, set by the large corporate owners and market conditions. There were no apartments available at the online advertised prices. Fees are outrageous. There are amenity fees, fees to set up postal deliveries, application fees, fees for each occupant, pet fees, pet DNA fees, and so on. Leases run dozens of pages. Short term leases are virtually non-existent. I told one apartment rental consultant that their application process was more involved than qualifying for a mortgage.

I chose to roll over my CO gains into the FL housing market. Perhaps I should have waited for the crash and rented in the meantime. I don't plan to move for a long time. The FL market is still not as expensive as CO but it is catching up, probably due to the migration out of NY, IL, and CA.

Massive money printing, worthless government spending, and interest rate manipulation create all kinds of asset bubbles and inflation and misery for the average American. If you are a first time homebuyer who doesn't have gains to "rollover", you are screwed.
2021-12-27 07:58:13