The New CS Board

[jumanji0881]

Curveballs In The Housing Bubble Bust : https://www.zerohedge.com/markets/curveballs-housing-bubble-bust

My Comment: I also think that the Achilles heel for housing is leverage. When only 3%-5% down is required to buy and prices are at record highs, it does not take much of a decline to have negative equity. Also, in the recession, if you lose your job, then you lose your house. RE prices are insanely high.

Excerpt:
One reason why people with cash will be interested in using it to buy a house is the urban migration is reversing. The rich people who snapped up tony homes in tony urban neighborhoods are quietly selling to the unwary and moving to rural towns and exclusive enclaves far from decaying urban centers.

Strong demand from cash buyers and limited supply equal home prices which don't drop, they only notch higher.

A large number of people with insane amounts of cash are not U.S. citizens, and they're seeking safe havens and nice neighborhoods in places like Canada, Australia and the U.S.

Corporate owners and buyers are another curveball. Corporations which snapped up hundreds or thousands of rental houses may have confused greed with investing genius, and a nice little recession may leave them with hundreds of vacant homes or newly unemployed renters resisting eviction for non-payment of rent.

As these corporations unload their massive inventory, prices could fall considerably lower than pundits anticipate.