[hud 91gt]

Originally Posted by Roach

Buying real estate right now is the stock market equivalent of a crowded trade. So many people are purportedly successful real estate investors with a significant number of these individuals holding several properties (positions). The amount of leverage is sometimes astounding.

Reminds of the story of the 1929 Stock Market Crash when the shoe-shine boy was giving stock tips:



WHEN THE SHOESHINE BOYS TALK STOCKS IT WAS A GREAT SELL SIGNAL IN 1929. SO WHAT ARE THE SHOESHINE BOYS TALKING ABOUT NOW? - April 15, 1996

Enter at your own peril, because psychology could change rapidly, signalling a rush for the exits. All IMO of course.

Kev

As I read that I thought upon my peers who have purchased recently due to emotions and their lack of ability to get in if they wait. Carl disagrees but these situations shows emotion. If you get swarms of emotional over leveraged people what could possibly go wrong?

The number of people I've seen scared into purchasing a 3/4 million dollar home recently (Victoria) due to fear of missing out is astounding.

Government intervention may expedite the process of slowing the market. That is a good thing. The market will fall. How high did you really want it to happen before it does so?

Everyone is preaching about how awful it is for people to wish the market will crash. The market will go back to it's fundamentals at some point. Having it happen now(or a few years from now) is going to affect a lot less people then if it were to happen 9 years from now at the current rate.

It will hurt a lot of younger people and their smaller down payments. In fact it will probably hurt me. But being realistic about the situation doesn't exactly make me an asshole does it?