US real estate is in danger, housing market collapses with a 29-year low, an opportunity for Bitcoin?

As the Corona virus wreaked havoc on the global economy, some industries took longer to feel the burden of financial hardship. As investment values ​​fall, economists believe that the US housing market will collapse to a 29-year low amid a global recession. Lendingtree's chief economist, Tendayi Kapfidze was one of the analysts who believed that the entire US housing market could close. Kapfidze warned that the fear of Covid-19 would leave a "catastrophic impact" in the real estate industry.

While the Fed cut interest rates and pumped trillions, US interest rates and real estate prices remain high

Stocks, bonds, commodities and digital currencies were all sold off sharply in the past week and a half. Revenue from industries such as aviation, tourism, hotel chains, agriculture, and construction plummeted to unprecedented levels for more than a decade. The unaffected industry is housing, at least real estate values ​​remain high in 2019. On U.S. real estate listing services, house prices have not changed and assets have been Overvalued is still very popular. Although the Federal Reserve lowered the benchmark interest rate for private financial institutions to 0%, the 30-year fixed mortgage rate increased by more than 0.3% this month. Right now, when 30-year loans from the same bank have a 0% interest rate, a reserve requirement of 0 and $ 1,000 billion is provided to them daily, the real estate loan rate is still set. at 3.65%. Moreover, government-owned Freddie Mac has published data showing interest rates at 4.28% this week.

Real estate 1

Mortgage rates (monthly trends in 2019-2020)

Economists: Total home market land in U.S.A will close

As Covid-19 continues to spread in the United States, US economists are predicting the housing market will fall into extreme circumstances next month. This is because the housing market is facing severe economic losses and potential homeowners stop buying houses now with the financial situation currently crippled. The American Real Estate Association notes that a large number of real estate companies have restricted the opening and display of property due to the Corona virus. Even when there were no restrictions, people canceled the introductions and the journalist list was suddenly rescheduled. For example, in the first week of March, 193 San Francisco homes were listed as "on sale", currently, but currently available. 172 houses The analogy is in a "hold" situation.

Real estate 2

Tendayi Kapfidze - Chief economist of Lendingtree

According to one interview recently with Yahoo Finance, chief economist Tendayi Kapfidze of Lendingtree said that the United States may soon "stop working in the housing market". Kapfidze predicts that the US real estate market will be hit hard and suffer a "drastic impact". Moreover, Kapfidze emphasized that US homeowners are holding a record $ 18.7 trillion in home equity, but they are in no hurry to refinance banks. Kapfidze emphasize in another interview published on March 18:

"People are more alert to accepting debt levels housing high. Many people lose their homes because they have to shoulder too much debt during the financial crisis”.

Unemployment and increased restrictive measures are the main reasons that the real estate market is affected

Kapfidze is not the only economist who understands that the real estate industry is facing a nationwide recession. A recently published analysis from Capital Economics notes that the housing industry will be ready to receive the storm and house sales may drop by 35% by the end of next month. Capital Economics cites the current US stalemate economy and emphasizes that this trend will continue to force people to lose their jobs.

According to Capital Economics' real estate expert Matthew Pointon, the main reasons are "strengthening restrictive measures on people's dynamics and increasing imminent unemployment". Moreover, the National Association of Realtors (NAR) recognizes that there is a significant decline in the interests of buyers and sellers across the globe. The interest rate has decreased by 3 times compared to normal and belief in home ownership is significantly reduced. NAR chief economist Lawrence Yun said:

“A decline in confidence is related to the direction of the economy along with unprecedented measures taken to combat the spread of Covid-19, including efforts to isolate society across the country, Of course, buyers and sellers are cautious. The less listed in a shortage of housing environment, the price of house will probably be stable ”.

While surrendering markets become an 'opportunity' for JPMorgan, the world needs anti-censorship and non-trust financial systems.

While the real estate industry is facing a downfall, economists and speculators have wondered if digital currencies like BTC are a better investment than home and office ownership. , retail, industrial and multi-family. The gold and precious metal markets that were considered safe havens were suppressed and the price recession was the same as they were manipulated in 2007-2008. Real estate has always generated revenue and has provided the best risk-adjusted returns among the major asset classes to date. Although during the subprime mortgage crisis, home sales skyrocketed and the real estate market slowed down in 2017. The extraordinary performance of BTC surpassed real estate investments in a single blow. The fight lasted that year. However, BTC performance has changed drastically in 2018-2019 and the housing industry has grown steadily and outperformed most of the coins in the cryptocurrency industry.

Currently the world is at a crossroads and the real estate industry is facing imminent difficulties. Therefore, real estate investment will not gain as much profit as before. More than ever, the world needs anti-censorship money so that wealthy people are not manipulated. Unfortunately, history shows that both the real estate market and precious metals are saturated in economic difficulties. We all know that precious metals provide the industry with regard to intrinsic value. Property rights can also be valuable because housing is scarce and necessary. But right now, when banks are facing significant cash liquidity problems, Americans and global citizens need unlicensed financing to shield them from the storm. 0% interest and trillions of dollars are being transferred to private banks and bailouts that benefit ordinary citizens. Wall Street bankers are thriving and really smiling in satisfaction as they see the stock market and housing market decline, giving them an opportunity to take advantage. For example, Jamie Dimon JPMorgan's CEO made recent statements on CNBC:

"I do not consider the economic downturn to be bad. I mean, bad affect for America. RLand tragedy for the unemployed. But usually an opportunity for JPMorgan.

Satoshi Nakamoto knew that society could not trust the current banking group and designed a special system to eliminate third parties. "I think this is the first time we have tested a decentralized system, not based on trust," Nakamoto said in February 2009. Bitcoin was created because of the system Bank Modern central and even precious metals, the real estate market has been manipulated for years.

Stocks, real estate and the gold market need trustworthy entities to keep the system running and 9/10 politicians trusted, the Fed and bankers like Jamie Dimon ruin trust. The current economic crisis has shown society that precious metals and real estate investments, despite being believed for centuries, are faltering and the participants' lack of confidence. The world needed a monetary system that could not be manipulated at random and Nakamoto did provided for this invented society 11 years ago. Nakamoto was write many years ago:

"Root problem of the Ordinary currencies are all trust required let it work. Central bank must be believed not do bad Travel status of currency, but the history of fiat money is full treacherous treason. Banks must be trusted to hold money and transfer money electronic, but they lend in the credit bubble with the part of the Reserve.

Thuy Trang

According to News Bitcoin

Follow the Twitter page | Subscribe to Telegram channel | Follow the Facebook page

Crypto loans are only from 5.9% annual interest rate - you can use the money effectively without selling coins. Earn up to 8% interest per year with stablecoin, USD, EUR & GBP with insurance up to 100 million. Come on, get started now! →

Nguyen Diep

My name is Nguyen Manh Cuong. I was born in a poor village in Ba Vi district, HA NOI province - windy and sunny land. Currently

Post a Comment

Previous Post Next Post

Đọc nhiều trong tuần

10 Grands Sites de modèles PowerPoint gratuit
10 Grands Sites de modèles PowerPoint gratuit

PowerPoint est toujours le roi quand il vient à un logiciel de présentation. Il a été autour depuis des siècles et chaque nouvelle version ajoute plus de fonctionnalités et rend …

17 best home jobs in 2020
17 best home jobs in 2020

Earning Money blog access_time April 13, 2020 hourglass_empty 28 least Read Finding work from home is easier thanks to high technology. Not only suitable for tho…

How much RAM is the iPhone 12 Pro?
How much RAM is the iPhone 12 Pro?

The RAM of the iPhone 12 Pro is up to 6GB.
Based on information in the latest Xcode beta from Hiraku, it can be said that both of Apple's new iPhone 12 Pro models have 6GB of R…


JavaScript is a programming language of HTML and WEB. It is lightweight and most commonly used as part of web pages, but their implementation allows Client-Side scripts to interac…