How much of the recent stock market gains are due to a hidden inflation thanks to the trillions of dollars being borrowed (or printed) by all the governments around the world?
Get ready for 2 dollar eggs and 20 dollar loaves of bread!
E.g. own 5 properties, each 50% mortgage, 50% equity, and 30% of equity immediately available keeping max LTV under 80%.
They could immediately buy 1.5 equivalent properties and work out the financing later.
They might even get better financing terms because they negotiate without the pressure of "I need you to give me a mortgage, otherwise I can't buy this hot property".
If you received two identical offers, 1 contingent on financing, the other cash, you'd take the cash offer.
However much sense stable, realistic home prices make in the long term, it makes sense in the short term for each president to continue propping up the market -- which president wants to inflict wide-scale harm on 2/3 of the households in the US?
But it probably means hot markets like nyc, sf, la will remain very expensive.
It really is hard to say what will happen as the banking system is so different today than in the past. I do think we will see continued leaking of all the new money that is being printed out into hard assets, but beyond that I have no idea.
There aren't many markets like this in the US and they're all expensive. NYC, Northern Virginia/DC. Overheated, maybe, but not by much.
All of those cities are seeing price declines.
SF will probably bottom out in 6-8 months. Depending on how long these fires burn prices could go down quite a bit.