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Lawrence Yun, chief economist of the NAR: Buy now or be priced out by inflation

By EBGuy follow EBGuy   2020 May 21, 8:03pm 252 views   14 comments   watch   nsfw   quote   share    


Yun predicts overall inflation will land in a range of 4 percent to 7 percent, although it’s not a widely held forecast. Many economists and market watchers anticipate no return to inflation. Yun’s projection, if accurate, could force consumers to reshape their expectations about mortgage rates, home values and the pace of property sales.

A rise in inflation would lead to higher mortgage rates, along with lower rates of homeownership and fewer home sales, Yun says. However, the news for property markets wouldn’t be all bad — if inflation were to rise to the range of 4 percent to 7 percent, home prices would appreciate by 5 percent to 10 percent a year, Yun says.

“Home prices would be rising because real estate is a very good hedge against inflation,” Yun says.

https://www.bankrate.com/mortgages/coronavirus-could-bring-inflation/

Remember, it's always a good time to buy and/or sell a home.
1   mell   ignore (4)   2020 May 21, 8:15pm     ↓ dislike (0)   quote   flag      

Who is going to buy any homes amongst the millenials? The market is only propped up by boomers and Gen X ers, for the time being. Yun is delusional and home prices will drop or be flat at best if there's high inflation. The future homebuyers have no money.
2   BayArea   ignore (1)   2020 May 21, 8:26pm     ↓ dislike (0)   quote   flag      

What a dummy
3   CBOEtrader   ignore (6)   2020 May 21, 8:54pm     ↓ dislike (0)   quote   flag      

I moved to vegas recently.

I live in a lovely townhouse complex, about 4 miles from the strip where i am currently renting a 3br/2ba, 1700 sqft townhome valued around maybe $275k for $1500/month. My neighbors were telling me these exact townhomes were trading hands for $45k during the 2009 crises. I'm excited to see how far vegas real estate can fall during the covid crises.

I'd love to buy my current rental for $100k! I'd buy as many as the bank would allow at that price
4   APOCALYPSEFUCKisShostakovitch   ignore (53)   2020 May 21, 9:34pm     ↓ dislike (0)   quote   flag      

HAHAHAHAHA!

Once the shooting starts and human face is the last thing on the menu, you'll be able to buy the whole block for $100,000!

FACE!

IT'S WHAT'S FOR DINNER!
5   clambo   ignore (5)   2020 May 21, 9:55pm     ↓ dislike (0)   quote   flag      

You could wait for some foreclosures down in S. Florida, pick up a dump for $20,000 or so.
6   APOCALYPSEFUCKisShostakovitch   ignore (53)   2020 May 21, 10:01pm     ↓ dislike (0)   quote   flag      

Right on.

Fill the basement with yams and ammo and put the wife on the roof with M134.

Wait for the end.
7   mell   ignore (4)   2020 May 21, 10:06pm     ↓ dislike (0)   quote   flag      

CBOEtrader says
I moved to vegas recently.

I live in a lovely townhouse complex, about 4 miles from the strip where i am currently renting a 3br/2ba, 1700 sqft townhome valued around maybe $275k for $1500/month. My neighbors were telling me these exact townhomes were trading hands for $45k during the 2009 crises. I'm excited to see how far vegas real estate can fall during the covid crises.

I'd love to buy my current rental for $100k! I'd buy as many as the bank would allow at that price


I toured a few back then our of curiosity, 20k-80k indeed for 1 to 3 bedrooms.
8   clambo   ignore (5)   2020 May 22, 2:59pm     ↓ dislike (0)   quote   flag      

Buy now or miss out on paying property taxes to pay the rich pensions of California public goldbricks.

My new neighbor pays about $18,000/year, forever.

"It's only money" said someone who died of starvation.
9   SunnyvaleCA   ignore (1)   2020 May 22, 4:00pm     ↓ dislike (0)   quote   flag      

clambo says
Buy now or miss out on paying property taxes to pay the rich pensions of California public goldbricks.

My new neighbor pays about $18,000/year, forever.
Yup. Even after paying off the $1.5MM mortgage, you never really own the place.
10   Misc   ignore (0)   2020 May 22, 4:30pm     ↓ dislike (0)   quote   flag      

In todays market manipulated environment, it's technically possible for Yun to be right. If Congress continues sending out an ever increasing amount of free money until there is inflation in that range, and the Fed continues to buy bonds at an ever increasing rate to keep mortgage rates from climbing, real estate becomes the only game in town.
11   ignoreme   ignore (3)   2020 May 22, 6:07pm     ↓ dislike (0)   quote   flag      

We are one month of lockdown away from deflation.
12   PeopleUnited   ignore (1)   2020 May 22, 6:11pm     ↓ dislike (0)   quote   flag      

ignoreme says
We are one month of lockdown away from deflation.

We are already in a depression, nearly 40 million out of work. Businesses closing permanently. But two to three years from now? If this nation still exists, prices will be higher than ever, for both stocks and real estate, with allowance for some localized depreciation.
13   WineHorror1   ignore (1)   2020 May 22, 6:31pm     ↓ dislike (0)   quote   flag      

PeopleUnited says
But two to three years from now? If this nation still exists, prices will be higher than ever, for both stocks and real estate,

Why do you think that?
14   PeopleUnited   ignore (1)   2020 May 22, 6:34pm     ↓ dislike (0)   quote   flag      

All that bailout money will be used by the rich to buy real estate and businesses and stocks.

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