The push into real estate by corporations, businesses, and investors, as well as a few well timed consumers, was no joke. Whether it was planned or not (the financial collapse I mean) is another question entirely; these people have seized on it. In places in CA and highly desirable markets like Los Angeles appreciation has come in at about 20% in the last year, in areas like Las Vegas more, and in some areas a little less. Still not at the levels we were post bubble but heading in that direction.
My gauge tells me that we are in the second, beginning the third year of an inflationary spiral, that will peak in about ten to twelve years from when it began. For some time the elite have been using real estate as the vehicle of choice, for a multitude of reasons (everyone needs a roof over their head), and the expansion and appreciation of real estate prices and other corollary assets will drive the economy and wages for this next period of time. As real estate prices increase so must wages, and they again are going to have to find a way to make borrowing to purchase real estate more affordable for more people.
Is this going to end well - my gut tells me it should end similarly to before; rinse, reload, repeat. I see buying gold at the end of this cycle as being a great call; when the flippers are back in buying every piece of real estate they can see hand and foot, this should be a great time to buy precious metals, which by then should have tanked. My 2 cents per prognostications...
Edited by reddybuild, 17 November 2013 - 03:28 PM.