Demographics control the market. Especially real estate. So, why aren't the pundits talking about this? Why aren't they analyzing the numbers? Why aren't they talking about the boomers who own 25% of the houses, who will move into retirement homes or mortuary plots this decade?
People are still talking about "the housing crisis", as if something needs to be done about it. It is already over. And the banksters and building departments can no longer keep supply limited.
In an ordinary market, prices would move back towards normalcy. But real estate is not an ordinary market. It is a market based on fraud, coherence, theft, and keeping people from a necessity, a need. A market that banksters should have been kept out of. Just like when banksters were driven off at gunpoint when the banksters try to auction someone's farm.
The demographic collapse
The boomers, the largest generation in recorded history, are getting on it years. Most countries do not have a replacement for them.
There are going to be less people in the future. And this affects all markets. There are some people who believe that demographics explains the entire market. (which is not without merit)
And, if it was just the boomers who were leaving, the effect to the real estate market would be devastating, but it is worse.
- All causes mortality is still going up
- Fertility is down, especially in 1st world nations.
- Wars and rumors of wars. People are being genocided. unCivil Wars will be everywhere.
- Famines, Floods, Forest Fires, Volcanoes, Earthquakes
- epidemics and plandemics
The demographics is going to be a lot lower than just the replacement births suggest.
The housing market
Not many people can afford, or even want a 2nd house, even if they were free.
So, basically if you have one extra house on the market, it won't sell. Excess inventory doesn't clear, it would just get traded around, if anything. The minute we have extra houses, is the moment the real estate market collapses to nothing.
Think about it. There are ghost towns. If you wanted a house, you could just get one. Imagine if San Francisco becomes a partial ghost town. The low priced properties become free, while the high priced properties (more valuable locations) may keep some value.
This means that the suburban tract homes become unsellable, and if you want one, find one that is empty and move in.
The only think that will keep the real estate market going is if someone use DEW (directed energy weapons) to burn down buildings to keep supply tight.
Why are people still trying to play the real estate game?
We are already seeing huge commercial buildings go for pennies on the dollar. Malls are being converted into govern-cement bureaucracy offices. They are talking about turning commercial buildings into high priced condos/apartments.
The commercial real estate market is already dead. Just no one is broadcasting that fact. And this is mostly, just from people working from home.
New home builders are having to lower prices to get their homes to sell. So, last years tract is now selling for more than this years tract. Yes, that is correct. You can get a brand new house for less than a one year old house.
And as this continues it will become apparent that we have too many houses and not enough buyers. House prices are going to fall off a cliff.
You can go on ZilloFin and see people are dropping their houses by 10% just to get bites from buyers. It will be a larger percentage soon. And, if you are thinking of selling drop the price lots and fast. It will only go down from here.
The real estate market was a scam to begin with. A scam that hurt people.
Now it will all fall apart. The demographics are going down, and with that, the extra houses will be unsellable. There is no extra buyers. If there are a 1000 people living in the city, and there are 2000 homes well, there will be 1000 empty homes. 1000 homes that will never sell.
Sure, people will migrate towards the better homes, but that really puts a stake through the heart of all the cheap homes.
Since people are slow to accept the new reality, many will still try to sell their homes/think that their homes are valuable. They will still believe that their house is their biggest asset. But the reality will be that the entire real estate industry collapses. No mortgages, no brokers, nothing.
Everything changes. And one of the biggest effects is that many people will just stop paying their mortgage. Why pay when you can get a new house for free. And then, all the banks go bankrupt.