Hi Periculum. We read similar things, yes l heard about the car...

Hi Periculum. We read similar things, yes l heard about the car loans. Depends who you listen to, but some say residential real estate is in a bubble too. Those dumb Yanks, you gotta laugh. Who in their right mind would lock in 3% loans on a house for 30 years? No wonder the banks are stressed, they lent money out for 30 years at 3% and are now paying 5% or more for operating cash.

Only reason things are still cranking along is that 45% of property transactions are cash. Plus a shortage of residential properties to rent just like here in Aussie. Supply and demand, whete demand far out strips supply. one US realtor l was watching on a podcast recently, said that this is going to change as the Baby Boomers sell off their Mc Mansions and down size into retirement. The metrics are pretty straight forward. Large estates and large houses are comanding top dollar, which the Boomers expect because they often sank all their life savings into a home, hoping to use it as a retirement or pension plan. The Gen X and Millenials often dont have the money to pay current real estate prices, so it looks like there will be far more properties coming onto the market than buyers waiting in the wings. This is also a problem in Australian cities, so to suggest that we dont have a potential problem looming here is probably a bit naieve. It doesnt seem to be a problem here right now, but the numbers suggest its festering. With regular average city houses being $1.2 million to $1.5 million dollars, depending on your favourite Australian city, you gotta wonder who the next buyers are? Rich Chinese can't continue to inflate the property price bubble and Aussies earning $100K or less just cannot pay between one and 2 million dollars for a house. Its a problem that can end really badly. If we get a second wave of run away inflation after anticipated rate cuts later this year....... Good luck.