Is another real estate crash coming? Our last real estate crash happened in 2007, and we had a long recession with a short recovery over the past two years. Now we are seeing signs of a looming market crash. The bond market is precariously hanging by a thread according to bond experts. The stock market is in a classic balloon according to many financial advisers. The U.S. dollar is rapidly losing its position as the International currency. The economies of China, Japan, Iran, are Venezuela are all at risk, and if one country’s market crashes, there will be an International collapse of dominoes.
Real Estate Crash With Market Crash
A war in the middle east would surely cause a real estate crash nationwide. A major earthquake on the west coast could be the fall of the first domino nationwide.
The Federal Reserve, which is not owned by our Federal government, is an independent organization in control of our money, and they have been printing money and controlling interest rates for their own private shareholders, most of home are not in the U.S. They are currently pushing interest rates up, and the real estate market has already been hit hard across the country.
And if you haven’t heard, President Trump is at war with the Federal Reserve, and there are indications he intends to end their independent control of our money supply and monetary policy, just like his favorite President, Andrew Jackson, did during his presidency.
The Democrats are at war with Republicans, and it is a war that goes deep and wide, and it is far from over. Whatever your political affiliation, the reality is that this war could be the cause of economic chaos, political chaos, and even a constitutional crisis that could bring the country to a standstill.
Real Estate Crash Coming?
Why would I write about a possible real estate crash? Because if you are planning to sell a home in California or Colorado or Florida or Texas, and move to the Northwest or to any safe place in the country, I would not dilly dally. If there is a real estate crash, you will not be able to sell your home, and your dreams of moving to a safe place to retire will be over.
Don’t get me wrong, I’m certainly not a pessimist. If you knew me, you would know that I am one of the most positive thinking and happy people you will ever meet. I love life. I love my clients. I love God. But I’m not ignorant of economic realities and economic cycles. All the signs are on the horizon. Are you watching the signs?
You may want to read an article I wrote last February: The Real Estate Crash, and another article I wrote last August: Is The Real Estate Market Turning? Homes are suddenly not selling in previously hot California markets, and we all know that California is always our leading indicator.
Do your own research, but be careful who you take your advice from. Many of the financial advisers out there are all saying the same thing, “Oh just because the market is crashing doesn’t mean you should sell. No, it’s actually a buying opportunity.” Right. With your money and no risk to them, except they make money as long as you leave your money in the market.
Volatility is a Sign of Danger: Here’s something your financial adviser is probably not talking about–the danger and meaning of extreme volatility. The kind of extreme volatility that we are seeing now in the markets that is so visible in the DOW Jones Industrial Average (DJI), is a historical sign of great danger, specifically that the market is potentially on the verge of a major move, either up or down. The DJI has been up and down by 800 points, 500 points, 200 points, 300 points, and 400 points in single days. This is extreme volatility. One of the keys to success in life and investing is avoiding the traps for the unwary. You can be successful for years, but one big mistake can destroy all that success and hard work. Extreme volatility is another sign, among many signs, that we are in risky territory.
Is a real estate crash coming? Yes, but I cannot tell you precisely when. I can only say that my lifetime of experience in real estate and economic cycles is sending me warnings that it’s time to liquidate assets at risk and get settled into a safe home in a safe area like Sequim, Washington, and get debt free as quickly as possible. Your retirement home (real estate) is the safest place to hold a portion of your wealth. I hope and pray there will be no real estate crash, but it is nearly inevitable based on current national and International developments.
Last Updated on September 1, 2019 by Chuck Marunde
