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Strategies & Market Trends : ajtj's Post-Lobotomy Market Charts and Thoughts -- Ignore unavailable to you. Want to Upgrade?

To: ajtj99 who wrote (10487)	10/30/2020 1:27:27 PM
From: John Koligman	2 Recommendations Recommended By ajtj99 The Ox Read Replies (1) \| Respond to of 97456

Your post really brought back some memories for me. I remember talking finance with one of my neighbors back around 2005 and telling him I could not understand how our homes were going up 10-20% yearly while wages were essentially flat. Told him I thought it really could not last. Anyway, we ended up selling a good sized home on an acre in the northern NY suburbs right at the peak in 2006 and moved to the Chicago area to help out my wife's aging parents. We had decided to rent a townhome for some time to check the market out. Turned out to be a great move as we got top dollar for our home and were able to watch the market tank before buying again.

To: ajtj99 who wrote (10487)	10/30/2020 3:16:14 PM
From: edward miller	Read Replies (1) \| Respond to of 97456

Maybe or maybe not. I have a sneaking suspicion that since 2009 we have been trending towards home ownership dominated by the top 5-10% who buy multiple houses for rent that the rest will eventually only be able to afford renting instead of buying. With Blackrock and others becoming landlords there is a price squeeze on starter homes that mostly didn't exist prior to the GFC. This is not a trend that is such a radical shift that everyone sees it, but I think it is there. Eventually capital will own everything, and only the upper crust will have the capital for ownership. The Fed's low interest rate are a huge factor benefitting the most wealthy in this regard. None of the above means there won't be a correction, but I am saying the reset will not be as deep as prior cycles.