Peter Schiff: Real Estate Prices Will Drop Like Oil!

% of readers think this story is Fact. Add your two cents.

It looks like the real estate market has been stuck for about a year, treading water. 

Some people say  that this market is going to roll over circa 2008 as the hedge funds and the large institutions start to clear these massive inventories. 

According to Peter Schiff, ” The applications for mortgages are down 7%, or about 5% below the levels we were at a year ago . 

Even though gasoline prices are a low lower so that might free up some credit spending and credit standards have been loosened so that people can get mortgages with 3% down payments. Despite that, they’re not seeing a pick up in home buying. 

 

The year over year pricing has been declining and I think it’s not going to be too long before we start seeing year over year declines in real estate prices. 

The only thing that could save the market would be QE4, but if the Fed actually were to raise interest rates, that would put the nail in the real estate coffin. 

I think we are going to see inflation rates higher than that in the 1970s. The first rate hike is not coming at all. If we get more evidence that the economy is bad, in the jobs and the GDP numbers, will the markets go down? Or will it rally because it thinks that the Fed will be there? 

With the lower oil price, a lot of these good jobs in the energy sector in the US based on over $100 oil price, are going to go away. Even though you have the benefit to the consumer,of lower energy, it still could mean we are going into recession. 

We had the same benefit in 2008, where oil prices went from $150 down to $30, . That was an even bigger decline than we have now, being a bigger boom for the consumer, but it didn’t stop the recession. “
 

 

If you can’t afford to buy gold bullion at over $1,000 an ounce, consider-Buying it by the gram.It’s affordable. Compare the prices here. And you also have the option of an affiliate plan that allows you to make a good residual income, if someone you knows buys it. Click here for more information.