Quote:
Originally Posted by okusa
The California RE market is not skyrocketing and is not in jeopardy of a correction. It is only 3 years off the 2012 rebound and growing at a historically steady rate. Based on history, not what "many people" say, there should be at least another 4 years of growth before there is any sort of correction. The LA job market is rapidly growing. However, the housing supply is not increasing. That means the increasing prices are the direct result of increasing demand and limited supply. Also, as foreign markets continue to struggle, investors will be increasingly looking to relocate their money back in stable U.S. assets, e.g., real estate.
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Eh, but we are going to continue to see fewer and fewer new buyers entering the market. The average college student has something like $20k in student loans (and this value increases significantly every year) and are entering a workforce that has been victim to stagnant wages for decades, so their buying power is going to be significantly lower. I don't think this has had much of an impact yet. But I think it's very possible that we will see the impact of the $1.2 trillion dollar debt that continues to
increase, that's a lot of money removed from the buying power of new college graduates. Hopefully we just see wage increases (yeah right) instead of a housing crash though.
PS, I'm not a communist, I just think the current state of student loan debt is outrageous, and the market has become inflated and predatory (textbook prices have increased 3x the rate of inflation since the 70s and tuition ~2.5x...) to a point where we will soon see negative effects on the economy.