[quote=deadzone][quote=an][quote=deadzone]We’ll find out soon, as the tide goes out.
All I know is the bubble is popping, and the bubble was ginormous. When bubbles pop, it triggers margin calls, recessions and other cascading effects to the economy and personal finance. We’ve seen this before.[/quote]
How much decline in housing price are we talking about here?[/quote]
At a minimum I expect all Covid appreciation to get wiped out, that is a logical starting point. But beyond that who knows. Depends on what the Fed does. They completely control and manipulate the economy and housing market. They have not even begun to taper their MBS holdings yet and the market is already cratering.
The Fed currently owns 2.7 trillion in MBS, which is somewhere around 30% of the entire market, pretty crazy. Without Fed support there is no telling how low things could go. The entire market has been fake since 2009[/quote]
Cool, so 35-50% off from today. When do you expect the bottom to be?
Also, how long does it take for a market to move from fake to real? If a market has been fake for 13 years, would it need to be fake for another 13 years before we can call it a real market?
