Basically means leveraging beyond a certain point is not possible under current lending guidelines. Only way to do that in the future is if price appreciation continues in double digits(i.e. investors can use the growth equity for additional leverage) OR if flippers get “to be remodeled” houses at bargain prices.
Not sure if price growth at double digits can sustain in Bay area in near future.
It is true that price growth can not go spirally up always.As long as stocks are going up, people are bidding/buying with higher prices like the way hanera pointed out.
We may end up a recession or correction and the impact will be seen, but again recovery comes.
The correction period is shorter (and sharper) than recovery (Gradual) period
Over a long term, prices of all assets (stock or real estate) goes up by inflation.This is the main reason, if someone buys a home at any market price, they stand to gain after 10 years or 20 years at 5% YOY basis.
If all cash and high cash offers are the norms, we are far, far away from the top. A big potential boost is the repeal or watering-down of Dodd Frank. If Trump played a bit less golf, maybe he can at least get this much done?
I think none. Trump cares more about golf and chocolate cakes than anything else…
The stock market may be waking up finally. Nothing Trump promised will come to fruition, well, except maybe the wall, which we taxpayers are paying for. And his loose talk about North Korea is scaring people.
The stock market “might” keep on going up in the near future, but just like the shi**y economy & stock market during Obama’s first term was not due to him, current & near term good performance of the economy & stock market is not due to Trump.
Yes, the stocks are getting down with the pressure of rate hikes. Stock will sag some months and then slowly go up.FED does not raise rates when stocks are going down, they time the stock market. When it is up another DOW 1000 points, FED will raise another hike. This may take around 4-6 months.
Most of what Trump promised is coming to fruition. Look at this appointments, not at what Congress does. The relevance of Congress pales compared to EPA, Labor, Interior, HHS, Energy, etc. It has been that way for decades now.