Housing bubble 2020 reddit If housing is in a bubble, then construction and materials have to be in a bubble as well. Jan 21, 2022 · Redfin Chief Economist: We’re not in a housing bubble The housing market has been ultra-competitive since the coronavirus pandemic upended American society in mid-2020, ushering in an era of remote work and record-low mortgage rates that have resulted in strong homebuyer demand and a severe supply shortage. Nowadays, townhouse and condominium communities have cars from multiple renters lined up on service roads and along sidewalks often. I agree that you can’t time this, and I could be way off base with my assumptions, but all the signs are pointing towards a declining market. If you posed this question in 2020 - early 2021. Homes are not stocks, the price of homes should not be that volatile but they were. Maybe an unpopular opinion, but the hard truth is that there is no definite bubble popping to come. Was 2020 really a light switch that flipped on with regard 240 votes, 227 comments. Broad scale housing market decreases over 20% have happened twice in the last 100 years. Betting against housing is betting against the central banks of the world and betting that the western economy completely crashes. trueEdit: Thanks for the great comments! This is my first real post on Reddit :) Some additional context: Not hoping for a crash/burst with an intention to buy, rather an understanding of the rationale behind land prices. So why did the housing market boom? The pandemic has seen soaring home prices and record housing insecurity. The Seattle-area housing market is dragging. r/canadahousingbubble: Everything about the biggest RE bubble in Canadian history We would like to show you a description here but the site won’t allow us. News Housing Market Index, an interactive platform providing a data-driven overview of the housing market nationwide. It’s fucked largely because of housing - and in more ways than just housing not being affordable. Just look at March/April 2020. Sure there’s some weird TJ Warren performances thrown in there but that doesn’t discredit what we saw: insanely great basketball. housing unit has been pretty steady the last 20 years, though, as your data shows. Find out here. It's been running above historical averages by ~1. Prior to US Feb 16, 2025 · Note that Texas didn’t experience Housing Bubble 1, having finally gotten through with a huge housing bust some years earlier, and it therefore didn’t experience the big price drops in 2006 to 2012 either, just some moderate declines. THEY WERE RIGHT. Canada is the orange line. com Open Share Add a Comment Sort by: Best Open comment sort options [deleted] • Comment deleted by user Reply reply cynicaltoadstool • 417 votes, 505 comments. But I don’t have the financial literacy to understand how a market crash caused people to lose their homes. The extra money went straight into their pockets. This is vague? Powell said a "housing bubble" had formed during the pandemic and "the housing market will go through the other side of that. mortgages. 124K subscribers in the REBubble community. Heard a lot of the same "advice" to wait out the bubble, heard it in 2019, 2020, and after buying in 2021. We want common sense… 334 votes, 175 comments. I can't even consider relocating now because housing costs are so high. Show me a housing market bubble that burst outside of 2008, which was a banking failure not a housing failure in isolation. " 20 years ago I was renting and reading doom-and-gloom articles about a housing market crash any day now. We want common sense… There continued to be a 10% increase in housing prices, and the average new home is now nearly 700k in America, all while interest rates are at 8%. It's a hot market that will cool down with lower gains going forward. (Great Depression and Great Financial Crisis) They don't happen with nearly all recessions. There are new build condos in this area starting at the mid-to-high $500s which means you can expect to add $50-75k (or more) to the starting price after selecting your options. the housing market does correct every few years. The game of musical chairs that is the housing resale market becomes tough when lots of people get priced out. I know people that personally benefited during the last housing crash by listening to the right people. December 2020: Shorting Tesla’s “Ridiculous” Valuation December 2020 marked Burry’s boldest single-stock bearish play since the housing crisis: a $530 million short position against Tesla via put options, as revealed in Scion’s regulatory filing. " Quite a few other very specific quotes in the actual article. 125K subscribers in the REBubble community. Don’t try to time a recession. 6% Fannie Mae: 2. population. Prices are ridiculously high in my area and I just don't see how this is sustainable. Real Estate price growth from March 2020 (Median sales price of $322,600) to March 2024 ($420,800) is 6. Whatever it takes to stimulate more housing to be built, and more needs to be done to discourage investors, houses sitting empty and Airbnb's. I always thought I'd move to one more state before retirement, but guess I'll stay put. Share… Feb 22, 2023 · Frequent claims the country’s housing market is in a bubble—overvalued and unaffordable—has meant the threat of a significant crash has long loomed in Australian economic debates. The great bubble players and teams went on to be great in subsequent years. Reply reply This-City-7536 • What exactly happened with Canada’s 🏠 market in 2021? We’ve pulled together the data and charts to help make some sense of it. A place to freely discuss and investigate the current US housing bubble. As soon as lenders got their confidence back, house prices climbed, and remain Americans need to get louder and push much harder against DC to address the housing shortage. It’s literally twice as big. Looking at real estate for family home but not sure if it's going to be a bad investment. How many of you feel that San Diego housing market will fall by atleast 15% at any point of time in the next 2 years? Share Add a Comment Sort by: Best Open comment sort options Top New Controversial Old Q&A refusebin • Sep 11, 2024 · Is the United States in a housing bubble? We examine the signs, the risks, and what the future holds for home prices. In 2021 this ratio surpassed the peak of the previous housing bubble (in fact it hasn’t been this high since the mid 70’s). Share… Jul 12, 2025 · The U. A real-estate bubble is a form of economic bubble normally characterised by a rapid increase in market prices of real property until they reach unsustainable levels relative to incomes and rents, and then decline. In 2008 housing was cheap but everyone was losing their job so nobody wanted to eat out let alone buy houses. When somebody wants to buy a home they usually go to the bank to ask for a loan for their home or mortgage. 73 votes, 47 comments. I got into a debate with someone over in r/economics about SFH homes being bought up for rent and it got me thinking: how is the meteoric rise in house and rent prices NOT going to crash the economy as a whole? How can people be expected to pay more and more in rent and mortgages, plus weather the costs of inflation, while still supporting the consumer based economy? We all know wages aren’t Feb 5, 2021 · Covid-19 caused a recession. This caused Japan to lose economic competitiveness and is a major part of the reason why their economy stagnated for the last 30 years. 1% Mortgage Bankers Association: 2% James Graff 732-500-6883 Aug 19, 2025 · Examining the home price boom and its effect on owners, lenders, regulators, realtors and the economy as a whole. A 2020 report by the Pew Research Center estimated that undocumented immigrants make up about 4. trueYou’re about 2-3 years late on the synopsis. 413 votes, 322 comments. housing market is still in a slump—find out why it’s dragging on and what it could mean for buyers and sellers. Reply reply 363 votes, 240 comments. As the economy has become increasingly K-shaped, many businesses have pivoted to pursue affluent consumers in the The Canadian property bubble refers to the significant rise in Canadian real estate prices between 2002 and 2022, with short periods of falling prices in 2008 and 2018. 73 votes, 98 comments. Jul 20, 2025 · Learn about the causes and effects of the 2008 housing market crash that had a significant impact on the US economy and housing prices. Just trying to avoid being screwed, we unfortunately bought a townhouse out of college in 2007 and then that housing bubble burst and our neighbors got a larger townhome for 50k less 6 months later. They sold their starter house in 2005, rented for 5 years and finally bought their dream house as a foreclosure. Housing crisis and the real estate bubble - solutions The fast growing consensus is Canada is fucked. Share… 117 votes, 26 comments. My family owns a couple of properties in central Bangalore (plots/individual Aug 7, 2025 · Home prices have surged 61% since 2020, raising questions about whether a housing crash is coming. Is it possible rental prices suddenly skyrocket and justify the current housing prices? Yeap. So the impacts will not look like 2007. Luckily I did not listen, and got into the housing market when it was somewhate affordable. What are your thoughts, specifically around the status of current housing market against the 1981 and 2008 events? I'm also curious if you can share your profession or background to better understand the context of your answer. Home prices have soared far beyond what wages or rents can justify, mortgage rates have rocketed, and inflation is roaring alongside Trump’s 2025 tariff policies. Share… The housing market here continues to baffle me. I'm a CPA and all of my client's loans were forgiven but their businesses financials were very similar between 2019 and 2020. 9% of the U. Based on this figure, and assuming similar housing patterns between documented and undocumented residents, a rough estimate would be that undocumented individuals occupy around 5% of occupied housing. But it made up for having missed out on Housing Bubble 1 this time around. I've been saying that this is the biggest reason for inflation and the housing bubble for years now. If there's a collapse maybe in 10-15 years, too long to wait in a bad area small apt. 97K subscribers in the REBubble community. Again. 129K subscribers in the REBubble community. “The apartment investment industry—like many other asset classes—recently experienced a massive bubble. r/HousingBubble: A community for discussing the economics and psychology of the current US housing bubble. Share evidence, personal experiences, zillow screenshots and other interesting items. Single Family homes are in the high $800s minimum to start. The prices The housing market takes time to turn, and you can absolutely tell when a market is overvalued and undervalued. Yup. As a proximate cause, risky bridge loans came to dominate apartment investment. 3%, Core Logic 7, 2021: National Association of Realtors: 4. What are the key indicators you look for to make this call? Found a few things online that source 🔗 experts on the housing market 🔗 but doesn't really explain how they came up with these numbers aside from supply We would like to show you a description here but the site won’t allow us. The last bubble was driven by ARM loans that became unaffordable to the liar lone buyers, that had no where near the income to afford their houses once the mortgage payments went up back in the 2009-2012 period. MembersOnline • [deleted] ADMIN MOD Why Do People Assume a Housing Crash Would Affect the Economy? Couldn't it just go back to 2019 prices? : r/REBubble     TOPICS Gaming Sports Business Crypto Television Celebrity I've been thinking about buying a first home in 2024 and hearing about mixed sentiments around a looming housing market crash. Share… There are no economic principles that state housing must be within a certain window of affordability. So the people and corporations in the housing market all convince each other that houses are worth more, and buyers keep seeing that price so they start to believe that's just what a house costs, and we start to say that a housing bubble is taking place. We will just have to wait and see. People need to rent out but that's what apartments are for. But will house prices fall? Is the housing market in a bubble? And is it cheaper to rent or buy? Find out here. (as it already is doing) Feb 8, 2025 · A report from Mises. In my mind (and I guess I’m Nov 15, 2021 · The 2008 housing bubble is different from the 2021 housing bubble because interest rates on mortgages are lower in 2021, there is more of a demand for homes in 2021, and the government has created ways to prevent another crash. We would like to show you a description here but the site won’t allow us. So the answer to your question: A lot of Airbnb owners are just moving along per usual…some have been forced to sell and others have converted into long term tenants only. Apr 12, 2025 · The U. Nov 15, 2025 · The U. Now, some clever folks anticipated the music stopping—they saw the signs of the housing bubble, the over-leveraged banks, and the risky mortgage-backed securities. There was practically a collapse in housing prices (and stock market) because of the fear of covid. S. 305 votes, 185 comments. Overinflated prices: If housing prices have risen significantly over a short period of time, it could be a sign of a housing market bubble. We usually think about the housing market in binary terms: Are prices going up or down? Is there a housing shortage or no shortage? But I think the root cause of the current bubble is the relatively recent emergence of not one, but two separate yet interconnected housing markets. in things like Evergrande) invested in bonds and won't be able to make any payments on them. A place to freely discuss and investigate the theories of the 2021 US housing bubble. Housing prices made no sense to me until I looked into having a home built, and as soon as I did a lot of existing homes, if anything, started looking cheap. Feb 3, 2025 · A report from the San Francisco Chronicle in California. It doesn't really explain the two massive bubbles we've seen in that time. Mar 4, 2025 · Many experts predict the housing market will eventually improve but warn that uncertainties and challenges will persist. While Moody's Analytics own research finds 96% of housing markets are overvalued, Zandi won't call this a housing bubble. The people who said housing would crash in 2020 obviously don’t understand the relationship between interest rates and house payments. My theory is that both of these arguments are illegitimate and that this is just another case of price gouging. MembersOnline • TechNeck78 ADMIN MOD The 08 bubble killed the housing supply and brought the new housing starts from 2 million starts in 06 to 500k in 09. That's the whole point of the bubble because something that used to be coveted is something people suddenly want to avoid without a very very drastic discount. These loans made short-term, high leverage, floating-rate debt the norm when Seeing a mixed sentiment in the market with some people saying houses are being sold above asking price and some people saying housing prices are reducing. There are no economic principles that state housing must be within a certain window of affordability. Trust me he regretted it until today. They don't happen during periods of high inflation. Share evidence, zillow… 30 years of my entire life in Korea and not a single president has a strategy that can fix Korea’s housing crisis. But its Housing Bubble 2 was a doozie. 5% Freddie Mac: 2. But articles like these make me wonder if there is a point in waiting. Everything bubble driven by fiscal and monetary policy. Slowing home price growth, rising inventory in some A place to freely discuss and investigate the current US housing bubble. Bubble territory: are home prices headed to housing bubble? 2020: FHFA 7. Feb 14, 2025 · Why are houses so expensive? In just about every corner of America, it’s a familiar refrain. Nov 15, 2025 · 3. The goal is, on a federal level, that something be done about this. 275 votes, 64 comments. Share… It won't, because the bubble isn't based on anything that is going to crash or burst. We want common sense housing… I just came across a post on social media from several months back, about Bank of America offering 0-down, no credit score, etc. Since May 2018, the trusty spreadsheet has dug into trends to see if any economic or housing market troubles lay ahead. 0% per year during the last four years. 180K subscribers in the canadahousing community. This coincided with the reset of adjustable interest rates on many subprime mortgages, causing monthly payments to increase significantly. It may be bad, but will not have the outsized impact on housing that the 2007 crash had because the crash was largely created because of the housing bubble. 156 votes, 346 comments. The main factors that could drive the bubble further into bubble territory is if rents significantly increased in the near term, or if the Fed implements negative interest rates. r/REBubble: A place to freely discuss and investigate the current US housing bubble. Serious question here but are 2020 prices with a 6% mortgage rate really all that affordable? I remember people saying housing was expensive as shit even back in 2020 with lower rates. BlackRock had Phoenix among 3 other cities forecast to have a 2008 like housing crash: "will likely see peak-to-trough declines of more than 25%. 130K subscribers in the REBubble community. Price support would revert to somewhere between 2014 prices (if sentiment changes and there is a massive panic sell-off) and mid-2020 prices (if FOMO remains high). Share… May 2, 2025 · We look at economic indicators, expert opinions, and historical data to forecast whether the housing market will crash in 2025. It won't be a bursting bubble if most of the people are keen on going back in. In the 1990s, Japan’s massive real estate bubble popped and it still hasn’t recovered. 8%, Case-Shiller 7. Something else we do know is that housing prices are more volatile than in the past. Jul 9, 2025 · How this plays out will determine just how different the list of the hottest housing markets in 2030 may look versus in 2025. Bought a house in 2020, thank goodness. Source: Home values face significant dips as rising mortgage rates and economic unease crush affordability and house hunters’ will The issue with the housing market disaster in China is that many companies (especially international companies based in the US, EU, etc. Housing is not in its own little bubble. Buzz: The bubble burst. Even the Suns went undefeated in the bubble and missed the playoffs but the next year made the damn finals. Housing prices will decrease because people and corporations buying property will not be able to pay mortgages or rent profitably at anywhere near current prices when interest rates hit 5, 6, 7%. I relocated for work in December 2019, right before the pandemic. If there is a housing bubble it is not going to "pop" for 4-5 years. They had spent hundreds of thousands of dollars to knock down the 750-square-foot house on the property Housing has become so unaffordable that over 75% of homes on the market are too expensive for middle-income buyers Jun 25, 2024 · Despite the lowest affordability levels since the 1980s, the chances for a housing crash currently remain low. 82K subscribers in the REBubble community. I don’t know what the long term impact of A place to freely discuss and investigate the current US housing bubble. 204K subscribers in the canadahousing community. If the prices are not sustainable and driven by speculation rather than fundamental factors like supply and demand, a correction in prices could be likely. Dec 19, 2024 · While some argue that the market became overvalued in certain areas during the pandemic real estate boom from 2020 to 2022, by and large, most housing experts do not believe that prices are “This is my last “Bubble Watch” column. 89K subscribers in the REBubble community. It always does, and usually right after people start saying "will it ever go down?" At some point, homes may become unaffordable and supply and demand will have to balance. A housing bubble can form when prices rise to unsustainable levels. Here’s why : r/Seattle     Go to Seattle r/Seattle r/Seattle The credit crisis of 2007/2008 is probably a reasonable indicator of what would happen. If you think we are in a housing bubble, what are your thoughts on this article? Maybe US house prices have just "corrected"? I was in the market to buy a home and after a couple of offers, I realized the insanity out there and decided to stop the search until the "bubble" pops. How Big is the US Housing Bubble? Interesting chart. Here are some factors to watch. Share evidence, zillow screenshots and other interesting items. Most analysts are calling a 20% haircut or so. Our data is sourced from several authoritative sources, including the U. The bubble title has been completely vindicated. Florida housing is dominated by vacation homes, every time the economy in the country hurts, Florida housing prices drop. 51 votes, 157 comments. Now, people seem to envy our fixed-rate mortgage and amount paid (asking). In this expanded breakdown, we will cover the key data points exposing this bubble — price-to-wage, price-to-rent We would like to show you a description here but the site won’t allow us. Housing is too expensive – if it’s even available. When did most people catch on to what was happening? Feb, Mar, Apr 2022? Around the time of the… Everything bubble driven by fiscal and monetary policy. housing market picked up in early 2023. With trouble officially here, a “watch” is no longer required. Townhomes do have more variability depending on location but I’m seeing mid $600s to high $700s. Hence the absolute decimation of total homes sold in the GTA this year. This can be caused by speculative buying, as was the case during the sub-prime mortgage crisis when people who could not make the monthly payments on their mortgages were buying homes with very little money down. 50 votes, 55 comments. Lots of people replied that it was a trap, and part of what lead to the 2008 crash that caused people to foreclose. However high population density and an undersupply of houses meant that demand inevitably went back up again. In fact, the 1940-2020 US housing market is a global housing affordability outlier spurred on by the US government’s heavy intervention in the secondary mortgage market. Share… A place to freely discuss and investigate the current US housing bubble. Evergrande filed for bankruptcy protection in the US back in August. Share… 1. I mean to the average person. “At this time last year, Brooke and Zach Davis fully expected that their family would celebrate Thanksgiving and Christmas in their new, factory-built home on a quiet hillside in Soquel, an unincorporated area in Santa Cruz County. Wish it were a housing bubble and collapse coming, but this isn't 2007-2016, this is about supply & demand, too little supply. ). Korea as a whole should wholly embrace YIMBY or else the country will collapse. trueThe housing market is filled with investors renting out using airBNB. Share… 98 votes, 87 comments. 202K subscribers in the canadahousing community. Like it seems like now, housing is expensive, 5 years ago housing was expense, 10 years ago housing was expensive. You would have your answer now with rates touching 7% and many airbnbs having prolong vacancies. Japan is a decent example and that decline took 20 years and coincided with cultural and social motivations that deemed housing not "worth it" (not the Canadian ethos) and their population is in a decline they cannot seem 211 votes, 214 comments. BlackRock, HSBC, UBS, Fidelity, Pimco, Allianz all have positions with Evergrande. 83% per year. org. That’s the gambit. The thing with bubble is, even if you are right, it can take years for it to pop, like we saw in 2000 and now 2022. Mar 17, 2025 · Texas had finally gotten through with a huge housing bust some years earlier, and it therefore didn’t experience the big price drops in 2006 to 2012, just moderate declines. Updates and news about Canada's housing crisis. The current housing market is because of high demand or low supply. My point is, we need to stop relying on the Second coming of the housing crash to save us. This is unlike past bubbles, where, for example the late 00s/early 10s bubble, it burst because it was based on lending money to people who would end up being unable to pay it back. They only happen when the entire financial system is collapsing. That's back to 2020 prices give or take. Not sure how much data there is to so closely tie disparities in disposable income and housing prices to a bubble popping, but interesting. In order for it to be a housing bubble, it would need both home price overvaluation and speculation in the market. Apr 13, 2021 · The real estate market is red-hot, and many are wondering if we're in a housing bubble and headed for a housing market crash. I am an OCI and citizen of a country that heavily taxes inheritance. . Housing in the NCR will always have a demand. Nothing about it was a fluke. What do you guys think of the prices after the housing bubble burst? Will it go back to the 2010s range? I remembered my friend owned a townhouse (about 1600 sqft) close by Gerrard Square in downtown Toronto and he sold it for $350k in 2010. 118K subscribers in the REBubble community. This includes senior housing, section 8 (low-income), sober living, student housing, drug rehab, immigrant (housing choice vouchers), special needs, etc. Unlike in the FOMO-driven 2000s housing market, Zandi doesn't think speculation is driving our ongoing boom. The bursting the 2000s bubble involved housing prices reached unsustainable levels, interest rates started to rise and demand for housing declining. Data thehabistat. TL;DR: If you believe there is a real estate bubble that will be popping, how did you draw that conclusion? To preface, my… Nov 5, 2025 · This summer’s housing market saw less sizzling and more cooling, offering buyers some welcome relief while hinting at what fall could bring. This isn't a bubble or pending collapse. Learn how today’s market compares to 2008, what’s different now, and what buyers should expect in 2025. 1K votes, 208 comments. When the bubble popped, a lot of these companies were stuck for years repaying their debt instead of investing in R&D. What I’m saying is, make the decision that’s right for you and your family when you are ready. Pretty much the whole 9 counties of the greater Bay Area have had all of the construction of new, middle-income available housing forced into government subsidized housing. He has been predicting a bubble burst since late 2020, and he was 100% correct. All real estate is local, of course, and there Household vs. We still have not gotten back to the 06 numbers in terms of housing built. In the current timeframe, there is low inventory as many people have golden handcuffs of low rates. Over time, this will even out as retirements, weddings, job changes, kids We would like to show you a description here but the site won’t allow us. During the recession a third of all Florida homes were vacant. Peaking in the period from 2020 to mid-2022, this particular bubble was driven by multiple factors. housing market is in a massive, unsustainable bubble that has overshot every measure of fundamental value. 393 votes, 149 comments. I keep hearing people talk online about 2020 as some huge change in housing prices, but I don't really see it. Share Add a Comment Sort by: Best Open comment sort options Best NoSteinNoGate • The main arguments for why our home prices have risen so much in the last 2 years is because net immigration surged as people left major cities, and because of low interest rates. This time around though, housing prices will probably decline because the Fed is going to have to crank interest rates to fight inflation. Here in the UK it caused a short term fall in house prices, and the housing market stagnated for a couple of years.