Housing Bubble? The Housing Market Has Fallen Off a cliff.

Today is simultaneously the best time to buy rental properties and the worst time to buy a house.

Everyone knows that housing is in a bubble.
And everyone is seeing a slowdown in house sales.

But, no one is talking about the utter and complete destruction of the housing market.

• Baby boomers are being forced to retire (often with a grave stone) and this will come with largest dump on the market of houses. As the baby boomers move to retirement homes, care facilities or grave yards. Normally, they would have retired a while ago, but most couldn't. So, there has been no one moving up in companies. (this will be important later) And they are still holding onto their houses (their biggest investment - NOT)

• There is no up and coming generation. That means no buyers of houses. Millennials are looking at tiny houses, because the suburban baby boomer houses are way out of their price range. Further, these new generations aren't drawn to the suburbs. They are looking at rebuilt downtown areas or rural places.

• Telecommuting and e-commerce can be done from anywhere. Why stay in a high priced, bad school area? There is a growing field of workers that aren't tied to the city.

• Ice-age and fuel shortage. We are at the beginning of an ice-age, and we are about to start seeing some VERY cold winters. Along with this, there are a lot of countries that are starting to get cars. And that means we will start to seeing higher fuel prices while seeing more need for heating fuel. Add to that the damage that will be caused if war breaks out with Iran, and we will see the heating of you typical cracker-jack stick frame house become untenable. Sure you can own a house, but if you can't afford the heat, you can't liver there.

• Most of the housing price increase has been by banks lowering down payment requirements and interest while extending mortgage lengths. So, the buyer can afford more house with the same monthly payment. However, going from 4% to 3% is no where near the benefits banks got from going from 14% to 13%. And the banks do not have much wiggle room in duration. Lastly, there aren't any good non-sub-prime lenders to lend to.

And there is more that can be added to this list.
It all spells out a market with lots of sellers and NO buyers.

However, in areas where there is an increase in jobs, there will be a lot of people looking to rent.
They can't afford to buy, but they have to live somewhere while working.
And so, buying cheap fixeruppers in growing job market areas is a good prospect while the slow motion housing train wreck happens.

We will see a collapse of banks as mortgages become unpayable. First the little banks, and then the medium sized ones. So, mortgage lenders will become scarce pretty quickly

Along with this an ever increasing amount of houses for sale in job poor areas will be seen.

So, lots of houses for sale and no one able to buy them.
And no one wanting to buy them.

(except for people that invested in cryptos)

When you take your crypto profits, look at buying/building an earthship.
Passive solar heating is going to be of paramount importance.

And, yes this means there are going to be roving gangs of people who go through abandoned housing developments looking for anything recyclable.

All images in this post are my own original creations.