{"id":20849,"date":"2016-05-29T19:00:34","date_gmt":"2016-05-30T00:00:34","guid":{"rendered":"http:\/\/olduvai.ca\/?p=20849"},"modified":"2016-05-29T19:00:34","modified_gmt":"2016-05-30T00:00:34","slug":"another-real-estate-crash-is-coming-legendary-market-timer-unloads-his-positions-theyve-sold-deferred-reality-for-so-long","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=20849","title":{"rendered":"Another Real Estate Crash Is Coming: Legendary Market Timer Unloads His Positions: \u201cThey\u2019ve Sold Deferred Reality For So Long\u2026\u201d"},"content":{"rendered":"

Another Real Estate Crash Is Coming: Legendary Market Timer Unloads His Positions: \u201cThey\u2019ve Sold Deferred Reality For So Long\u2026\u201d<\/a><\/h3>\n
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\"real-estate-easy-money2\"\"real-estate-easy-money\"<\/p>\n

If you haven\u2019t heard yet, median home prices in the United States are on a tear having\u00a0reached all-time highs<\/a>\u00a0in April. To boot, rental prices have gone insane, showing a year-over-year\u00a0inflationary increase of 8%<\/a>.\u00a0On top of that, stock markets are rocketing back to their own all time highs based on the premise that the U.S. economy is seeing healthy growth. By all official accounts, it appears that we\u2019re back on track.<\/p>\n

But appearances can be deceiving and highly acclaimed investment guru\u00a0Sam Zell isn\u2019t buying the hype. In fact, he\u2019s taking this opportunity to sell\u2026 in a very big way.<\/p>\n

Wolf\u00a0Richter explains<\/a>:<\/p>\n

And he has been selling.\u00a0Back in 2007<\/strong>, he once again proved his sense of market timing.\u00a0As the commercial property bubble was already teetering, he sold<\/strong>\u00a0Equity Office Properties Trust to Blackstone for $23 billion, not including $16 billion in debt.Then prices crashed, and commercial property defaults hit the banks. As the dust was settling at the end of the Great Recession, he went on a shopping spree.<\/strong><\/p>\n

Now he\u2019s selling again, unloading multifamily properties at peak prices\u00a0on a massive scale\u00a0just when a multi-year\u00a0construction boom is flooding the marketwith new supply.<\/strong><\/p>\n

\u2026<\/p>\n

So when Sam Zell speaks, our ears perk up.<\/p>\n

Read the full report at Wolf Street<\/a><\/em><\/p><\/blockquote>\n

In a recent interview with CNBC Zell noted that zero interest rate policies are removing the risk of borrowing, making it easy for big banks and finance companies to keep pushing supply onto the market.<\/p>\n

Easy credit. What could possibly go wrong?<\/p>\n

A lot, according to Zell:<\/p>\n