Is the Writing on the Wall?

Is the Writing on the Wall?

Gee, let’s see if I got this right (in no particular order):

  1. Roughly 40% of houses sold were for speculative reasons.
  2. November sales fell 22% in the West. Existing home sales fell and the number of existing houses put on the market in November was the highest it has been in the last 21 years.
  3. “Investors are prepared to buy houses they will rent out at a loss; just because they think prices will keep rising — the very definition of a financial bubble.”
  4. Housing affordability is abysmally low.
  5. Housing starts nose dive.
  6. The housing bubble is bigger than the tech bubble of recent memory.
  7. Two-fifths of all private-sector jobs are housing related.
  8. 90% of GDP is accounted for by consumer spending and residential construction.
  9. Traditional, conservative loans have been replaced by “creative” financing and account for about 40% of today’s market.
  10. New steps will be taken to regulate low-interest, high-risk loans.
  11. Mortgage applications are now at a three year low.
  12. Gold prices are very high.
  13. The yield curve is inverting.
  14. Marin’s real estate is now in “two-sigma” territory.
  15. And a crappy old PoS-of-a-house in Marin will cost you two-thirds to three-quarters of a million dollars.

Did I miss anything? Feel free to complete the list.

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