Predictions for Real Estate Market 2017
Doom and Gloom or Bright Sunny Rainbows? Well, the market is not that clear. There are some people that think we are gonna crash and burn and others think we are going to go into a slump but nothing drastic. So basically everyone I follow is saying that there is going to be a downturn. Based on what I have seen and heard I agree with the somewhere in the middle. There is a lot of market manipulation going on right now which is propping up things like the stock market and the national debt. Our economy is a broken system of crony capitalism and communism. I am trying to not be so negative in this article but the economy is like standing on an empty tin can. Like the tin can if the weight of the economy is shifted too far one way or the other it’s gonna get crushed. I think the tin can we are standing on is a little tougher than the ones we drink out of today but none the less it will get crushed.
Why is this going to happen you ask? Well, basically the government and Federal Reserve is keeping the market up by keeping interest rates low. On the 15th of December, the Fed raised the rates a whole .25% which I think they are hoping is not going to do anything to the bad corporations with all of this debt. The evil corporations pay the Fed and Gov to keep it so they can remain in business. We do not live a true capitalist society when the banks can do a bail in to save themselves or when the Gov takes our tax money and bails out these corporations. Alright, I need to get away from this high-level stuff and give you info about Real estate 2017.
Baby Boomers retire
Baby Boomers are the second largest generation next to the millennial generation. The Baby Boomers are getting ready to retire in the next few years and most of them are going to be looking to downsize. This means we are going to have a surplus of houses become available. This going to hurt because millennials are not buying houses the same as the previous generations have. What does this mean for us as real estate investors? Well, this means there are going to be a lot of people with no one to sell their houses too.
Which is where we fall as investors. When these people start trying to sell their property and find that there are not that many buyers out there they will either be very okay with taking a discounted price or they will rent to property out. Which if they rent the property out and start realizing that it’s not for them they then become motivated sellers anyways. In a few simple words, a surplus of stock equals a buyers market with discounts.
The U.S. economy is a lot of smoke and mirrors right now thanks to the Federal Reserve and the Government manipulating the markets. They are keeping interest rates low to keep growth up. If they continue to do these large companies are going to continue to go farther into debt and if the Fed raises interest rates then those companies will no longer be able to pay back their debt which results in those companies defaulting on their debt which will result in the banks that loaned them the money failing. In a perfect capitalist society, this would not be a big deal but since we have crony capitalism what is going to happen is the Gov is going to try and bail out these big Corporations and the Banks are going to do a bail-in, where they take all of our money to fund themselves. After all of this happens the rest of the world will lose faith in us and the value of the dollar will plummet. The value of gold, silver, and bitcoin will skyrocket. This is not a pretty picture but it is the reality.
Isolated Bubbles Pop
There are bubbles out there where real estate values have skyrocketed and they are seriously overestimated. A good example of this is Austin TX because in the past 8 years the property values have skyrocketed and the city has grown considerably. The value of real estate is just at unrealistic prices. I personally feel like this is a result of people from California coming in and driving up prices. It’s cheaper than Cali but more expensive than it should be compared to the rest of the state. Texas has a really strong economy and I don’t how bad the pop is going to hurt but it’s gonna happen. There are other places to where this is going to happen but ATX is the one I can see the easiest because it’s in my backyard.
Some Lose and Some Win
No matter what happen don’t lose faith just keep building and innovating that is the way entrepreneurs do it. The people that are going to be hurt this is the ones that are not going to be able to adjust as things change. This will be a time that will weed out the weak businesses and allow the strong ones to prosper and new ones to grow. There is money to be made in upswings and downswings it just depends on what type of entrepreneur are you
Thanks for reading please leave any questions or comments bellow.