Does the US economy go down farther from here?
(Real estate prices, employement numbers etc...)
We're potentially buying a house (to move closer to family) but it feels like a really bad time.
Discussion
RE is a hard asset. Basically it’s a leveraged short on the US dollar. Where as bitcoin is a call option.
In the short term RE might pull back a bit, but if you’re holding “real assets”you’ll be good. Also view the RE more as a utility not as an investment.
Run numbers and make sure your nut is somewhat close to current rental rates to protect your downside in case plans change.
*Of course this is not financial advice.
definitely not financial advice
thanks for the note
Lol…we just bought a house to be closer to fam and friends too. We had zero competition, price per square foot was great. Don’t let people fool you single digit interest rates are very rare. Plus as they print they essentially inflate your debt away.
Yep, we're not super stressed about it. Inventory feels low where we are looking but I'm with you on debt gets inflated away. We are just looking to make the most of it. Feels like a March buy vs an August buy could look very different.
Probably but if you need to move you need to move.
yeah, we'll probably end up there but trying to make the most of it
What do you mean by go down? It’s been going down for a long time. Real estate prices may go down short term but they go up long term due to asset inflation. For better or for worse, US is propping up the world economy still (until hyperbitcoinization IMO).
If you see real estate as a long term option, then you’re probably going to end up ok.
RE for me is mostly just a place to live and less of an investment. Would be looking to buy at close to a long term trend line. Feels a bit spiky right now if that makes sense.
To be honest, I can’t see how the spikiness doesn’t go away. I don’t think the Fed will let us go into default. They’ll just go into money printer mode to “save” the economy ultimately jacking up prices again due to asset inflation.
hard landing
mark my words