Is the housing market currently so high that a crash or recession is inevitable?

Answer 1

Recessions are inevitable because there are socialists in Congress. Here is why we have had the last few recessions

1. After 9-11. The economy was decimated by the attacks.
2. Right at the end of the Clinton era. Clinton had little to do with this as he had little to do with the prosperity of the 1990's. We had the prosperity because Wall Street was pumping up technology stocks like crazy. Emotion took over and hit its peak around 2000. You had companies who had never made money trading in the $100 a share range. This was a bubble that was meant to burst since it was never real growth in the first place. Also, you had the credit card boom hit the fan. People charge too much and started to spend more than they make. We have a serious issue with personal financial management in this country. Today, the savings rate is negative. This means that people make less than they spend.

3. Then there was the S&L (Savings & Loan) problems in the late 1980's. This had 2 causes. First, a law was passed by Democrats in the late 1980's (back when they controlled the Senate and House) where they banned investment property losses from being written off. Professionals such as lawyers and doctors were buying rental property and taking the losses off their taxes. This was really stupid and the government put a stop to it.

Also, there were a bunch of banks and financial institutions that went bankrupt on junk bonds, high yield, high risk.

While I was in middle school at this time, this is my understanding of the problem.

Our next depression will happen in the next 5-10 years. There are millions of baby boomers retiring and expecting a Social Security sytem to be there and it will not. They have all kinds of assets that they will pull out of investments. I read this in a Robert Kiyosaki book, not sure which one because there are a lot of them. If you want to know more, read his books.

Answer 2

No. There won't be a crash. BoE are controlling interesting rates too tightly to let that happen and inflation will not be big enough to drive change. There may be a slow equalisation over the next 10 years but that will be not going up as opposed to the bottom falling out of the market.

Answer 3

crash perhaps the market is already cold on the east and west coast ,,,,, have you not heard of the real estate bubble ,,and i think its about to burst but not all markets will loose $$$ im safely in the midwest and own alot of houses but i am hoping the south catches up then i'll sell and retire

Answer 4

Yes, and there is worse to come, the average debt per person is £1.500 on plastic, and Christmas is just around the corner, we are going to see one hell of a crash that will make the biggest recession ever, and what then to the starving third world. ???

Answer 5

I don't think so. When things get tight again, the fed will lower interest rates and houses will began to sell again. More than apt most houses ARE over priced, but when the interest rates drop, they will still sell.

Answer 6

We've had housing market crashes before and we'll have them again. The prices are coming down. It's correcting itself.

Answer 7

I don't see

Answer 8

I'd say a definite yes to that. House prices aren't even in sync with wages so its got to happen!!

Answer 9

I have heard that realestate prices are going to drop very soon so i wouldn't worry.

Answer 10

God, I hope not...we've gotta sell in the next few years!