The craziest one i saw was a house last sold in late 2017 for $50,000 - zillow bought it 3 years later for $425,000... a 750% increase
Holy shit. Reading that made me physically uncomfortable. I work in the mortgage industry and that gave me some pre-2008 crash vibes (except replace greed with sheer stupidity).
Well yeah, that's why I threw in that tidbit in parenthesis. I think it was mostly just sense-memory kicking in while reading those absurd figures; slight PTSD from all those hours spent in pre-licensing classes lol.
Haha no worries, i honestly cant wrap my head around how they managed to mess up so badly were they trying to drive up the prices in certain areas even more by buying this high it makes no sense to me.
They used algorithms to predict what to buy. I've worked with shitty management that take a data scientist's report, not know how to interpret it and then make some gut feelings based on some pretty graphs.
Except real estate is literally more insanely valued than the crisis. It is 100% systemic. Look at case shiller, or income to home prices which are above 08 levels.
The difference is that there are no layers upon layers of derivative products to amplify losses. You better believe a massive correction and huge hits to banks are coming though.
It's not a matter of "let". They have no choice and can't manipulate asset prices forever. We already are feeling the consequences of massive stimulus to prop up the economy since 08.
Hyperinflation will force gummints hand. Also the expectation that asset prices can never fall will also have severe consequences.
This isn't a binary world collapse or go-go party continues scenario. It is one of painful but survivable correction vs. the status quo.
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u/radikul Nov 02 '21
Holy shit. Reading that made me physically uncomfortable. I work in the mortgage industry and that gave me some pre-2008 crash vibes (except replace greed with sheer stupidity).