no this one is different from Liberty Hill. This’s my friend from high school. He wants to stay in Sydney for job prospects.
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I am still waiting to buy. I want to buy two at greatly reduced price 
Good deal is no deal. Must be great deal 
Cash is king. Let’s who can afford to wait 
Starting to build a thesis that with rate increases & price drops, real estate as an investment will not make sense for at least next 2-3 years.
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Buy high, don’t buy low?
That’s what they said in 2018-2019 that RE will flatline or fall. But alas it saw record appreciation.
Logic says RE prices should crash to under 2019 levels because interest rates are much higher now but who knows what Fed will orchestra next to print more.
If Fed hikes by 1% and keeps its promises of QT and selling MBS we would see mortgage rates spike to 7% well even 8%.
Now is also an opportunity for Russia and China to create next round of global troubles to take commodity prices and inflation to another record high. I do not see any reason why they won’t do it right before midterms so dems lose and become lame duck.
So brace for some real turbulence. And finally RE will be destroyed.
Finally, economy will be deep trouble, RE will be better than economy !
FED unable to do QT from June onwards! They are forced to stop QT.
In June 2022, FED tried to sell MBS, there were no buyers !! Now, FED is forced to hold all MBS.
Their balance sheet reduction is stalled ultimately!!
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Yes that’s fair. Fed has been mostly doing lip service so far. What a pathetic set of liars.
On RE I bet it’ll be as bad as any other asset class. Folks who need to sell but are holding out will repent and will end up selling at even lower price. Because RE will keep declining for several years. They will chase the prices down literally. And btw a big RE reset is much needed to improve standards of living and make US economy competitive again.
You list your house, you do not get buyers, what will you do? Can someone blame you lip service?
If FED takes a loss by reducing the list price, eventually who takes care of the loss? Country tax payers like you , me and everyone.
If no buyers, you will remove the listing, holding your real estate. That is what FED would do.
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Thats not how Fed works. Using your arguments I could have said that Fed would not have bought MBS either. If I am looking for a house and everyone is asking 2x the value and no one else is buying, I will wait, right and let it crash first.
Fed works differently. They bought MBS when no one else was buying. Similarly they need to sell now when no one else is buying. The goal is selling is not to make profits but to reset the money supply and easy money. For Fed money is just paper.
How?
Anything can be sold at the right price. Just like anything can be bought at the right price.
They signed up for the loss when they bought it BLINDLY. That was the goal anyway, to transfer all losses from rich people to the US govt.
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For the sellers pointed out by @REInv,
would face foreclosure eventually when the equity in the house run out. The right way to sell in this market is to price 10% below market or sellers end up…
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Who takes care of loss?
American people. Wasn’t it obvious when they bought MBS blindly. Well that was the goal in the first place, to transfer all losses from wealthy class to ordinary Americans. Now they can control inflation, sell all MBS and kill the RE bubble which in a way will transfer the losses back to the wealthy. What Fed is doing is nothing short of criminal.
True !
If FED or USG is reckless, they do the way you say. No sane government people will do such a reckless job.
If they are responsible, as their job is to maintain economic stability, they hold their balance sheet.
Haha are you delusional. US Govt. has been reckless for almost two decades now.
If they were responsible, we will not have record Govt debt, and record inflation. They said the first QE was temporary in 2008 and they will unwind which never happened. Then came the second QE and they said they will unwind again. Well they have been lying and reckless since 2008. If they were responsible they will not spend more than they earn. In fact they are getting more delusional with time. This will all lead to a big disaster in the end, every country which spent more than earned eventually went bankrupt. Its a matter of when not if.
As a person/investor we must know this and take care ourself as we are not govt neither FED member.
Once government prints money, they can not roll back expect temporarily. Show me one government in the world which rolled back fully? No one exists for 1000s of years.
The only way is to control economy so that social unrest (like Sri Lanka) can be avoided.
I agree with this. If you are wealthy, Fed is your best friend.