Guest Post by Anthony Sanders
Since 2007, wage growth has been slow while home prices have soared particularly after 2012.
Homeownership rates have fallen to a 50 year low.
Continue reading “Almost Half of Homes in New York and D.C. Are Now Losing Value (Bubble Bursting?)”
The Chinese housing bubble is deflating faster than a Chinese made balloon at a kids birthday party. Home prices are plunging. It seems buying 10 unoccupied condos before they were built really wasn’t a path to easy riches. The Chinese should have watched the later episodes of Flip That House, before the show got canceled.
The best chart is #8. Since Americans don’t understand the metric system, I’ll convert it to something you’ll understand. The Chinese currently have 32 million square feet of VACANT residential real estate for sale. The average home size in the US is 2,100 sq feet. The average home size in China is 650 sq feet. They are a tiny people with much lower obesity levels, so they can fit in smaller spaces. They now have approximately 49,000 unoccupied homes for sale in their cities, up by 70% in the last 18 months.
The panic has begun. All the real estate “investors” are trying to dump their unoccupied condos at the same time. Where have we seen this before? I’m sure it will end well.
