No - real estate isn’t in a bubble

Specters of 2008 haunt the market. But our situation is quite different this time around. [Click to view in browser](. Dear subscriber, Fears of a housing bubble are overblown. Over a decade ago the housing crisis destroyed global markets and put economies on the verge of collapse. As home prices skyrocket, old wounds throb as the memories of that bubble haunt us. So why is this time different? Two key factors define a more stable market today than 2008. First, lending standards. Banks learned their lessons from their loosy goosy ways. Even if they didn’t, we subject the industry to more regulation and scrutiny than ever before. Leading into 2008, applicants lied about income or creditors never bothered to ask. The entire market relied on a shell game that hid the vapor everything rested upon. Today’s mortgage market, although not perfect, is much more structurally sound. Banks carry high amounts of capital on hand. And while collateralized debt obligations (CDOs - those pesky products that bundled mortgages together to hide the garbage within) haven’t disappeared, they’re by no means as prevalent. But the most important factor driving prices right now - supply and demand. Current demand for homes far outstrips supply. And the pandemic didn’t make things any easier. In fact, many wealthy city residents fled to suburbs in an effort to gain some freedom during lockdowns. The problem lies in the available inventory for purchase. The current housing supply sits at some of the lowest levels in over a decade. And despite increases in permits and housing starts, new residential completions continue to lag. Multiple factors play into this conundrum from labor to lumber. Heck, some struggle to get appliances for their homes! All this has driven homebuilder stocks like D.R. Horton (DHI) to all-time highs. We can expect the demand to wax and wane as interest rates jump around in the coming months. Yet, those calling for an all-out collapse of the housing market lack the fundamentals to support their arguments. Power Plays [5 Cheap Stocks To Buy Now]( In this article we discuss the 5 cheap stocks to buy now. If you want to read our detailed analysis of these cheap stocks, go directly to 10 Cheap Stocks To Buy Now. [Read More]( 17695 [Top Five High Growth Companies Hedge Funds Are Buying]( In this article, we’re going to discuss the five highest growth companies hedge funds are buying. To see a more stocks and have a better understanding of what are high growth stocks, please see Top 10 High Growth Companies Hedge Funds Are Buying. [Read More]( 15017 [Psychedelics Are The New Cannabis, Stocks Are Soaring]( Find Out Why This New Company Is Positioned To Compete With The Big Boys In This New $100 Billion Market [Read more here]( Sponsored Speculation [Cathie Wood’s Top 5 Stock Picks Based on ARK’s Latest Portfolio Update]( In this article, we discuss Cathie Wood’s top 5 stock picks. You can read our analysis of Cathie Wood’s recent losses, ARK’s performance and some of the most important comments from Cathie’s latest talk on her YouTube channel in our article Cathie Wood’s Thoughts on the Future, ARK’s Portfolio... [Read More]( 8928 [5 Best Non-Tech Stocks To Buy Now]( In this article we discuss the 5 best non-tech stocks to buy now. If you want to read our detailed analysis of these stocks, go directly to 10 Best Non-Tech Stocks To Buy Now. [Read More]( 8327 [This Company is on its way to becoming the premiere online marketplace for automotive equipment parts]( With a new acquisition in place, the company is focusing all efforts on their flagship forum [Become a part of this new marketplace by reading more here]( Sponsored Economics [Seven High Frequency Indicators for the Economy]( These indicators are mostly for travel and entertainment. It will interesting to watch these sectors recover as the vaccine is distributed. [Read More]( 439 [Some thoughts on Housing Inventory]( Last December I wrote Some thoughts on Housing Inventory. We are seeing record low inventory almost everywhere, and here are some updates to that previous post. The key for housing in 2021 will be inventory. If inventory stays extremely low, there will be more housing starts and a larger increase... [Read More]( 304 [Oil and Debt: Why Our Financial System Is Unsustainable]( Thank you, Chris C ($5/month), for your superbly generous pledge to this site -- I am greatly honored by your support and readership. [Read More]( 173 You are subscribed to email updates from [InvestingChannel](. To stop receiving these emails, you may [unsubscribe]( now. InvestingChannel, Inc., P.O. Box 118 New York, NY 10018. [Link](