{"id":36415,"date":"2018-08-04T12:23:36","date_gmt":"2018-08-04T17:23:36","guid":{"rendered":"http:\/\/olduvai.ca\/?p=36415"},"modified":"2018-08-04T12:24:36","modified_gmt":"2018-08-04T17:24:36","slug":"global-housing-bubble-is-popping-here-comes-the-reverse-wealth-effect","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=36415","title":{"rendered":"Global Housing Bubble Is Popping. Here Comes The \u201cReverse Wealth Effect\u201d"},"content":{"rendered":"
\n

Global Housing Bubble Is Popping. Here Comes The \u201cReverse Wealth Effect\u201d<\/a><\/h3>\n<\/header>\n
\n

Just a few months ago, real estate was on fire<\/strong><\/a>. Prices were blowing past records set during the previous decade\u2019s housing bubble as desperate buyers bought whatever was available at above the asking price while homeowners, confident that prices would keep rising, held out for the next big pop to sell. Notice on the following chart how the ascent steepens at the beginning of this year.<\/p>\n

\"home<\/a><\/p>\n

Then, as if someone flipped a switch, the trend shifted into reverse. Not just in the US but nearly everywhere. This list of recent headlines tells the tale:<\/p>\n

Housing demand sees biggest drop in more than 2 years<\/a><\/p>\n

Hamptons property sales slow as caution spreads to the wealthy<\/a><\/p>\n

Home Prices Are Falling in One of America\u2019s Richest Suburbs<\/a><\/p>\n

First Time Ever, More Chinese sellers than buyers<\/a><\/p>\n

Vancouver Suffers Its Worst July for Home Sales Since 2000<\/a><\/p>\n

Record Drop in Foreigners Buying U.S. Homes<\/a><\/p>\n

Australian home prices take biggest dip since 2011<\/a><\/p>\n

The End of the Global Housing Boom<\/a><\/p>\n

Manhattan Real Estate: Prices Plummet, Sales Tank<\/a><\/p>\n

What\u2019s happening and why is it happening now?<\/strong>
\nSeveral things came together pretty much simultaneously to turn houses from must-have-at-any-price necessities into completely optional and maybe not even desirable: First, prices rose beyond the reach of all but the seriously affluent. The gap between the price of the average home and the size of the mortgage the average local buyer can afford has been rising for years, but recently in the hottest markets it has become a chasm. Meanwhile, mortgage rates have started to rise, increasing the monthly payment on a given house dramatically.<\/p>\n

\"mortgage<\/a><\/p>\n

If you live in San Francisco or Sydney or Vancouver, chances are you can\u2019t afford to buy a decent house \u2013 not even close. And if you can\u2019t you don\u2019t.<\/p>\n

\u2026click on the above link to read the rest of the article\u2026<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Global Housing Bubble Is Popping. Here Comes The \u201cReverse Wealth Effect\u201d Just a few months ago, real estate was on fire. Prices were blowing past records set during the previous decade\u2019s housing bubble as desperate buyers bought whatever was available at above the asking price while homeowners, confident that prices would keep rising, held out […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[213,21100,406,2340,7544,668,21101,4311,13234],"class_list":["post-36415","post","type-post","status-publish","format-standard","hentry","category-economics","tag-dollar-collapse","tag-global-housing-bubble","tag-housing-bubble","tag-housing-market","tag-john-rubino","tag-real-estate","tag-reverse-wealth-effect","tag-trade-wars","tag-wealth-effect"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/36415","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=36415"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/36415\/revisions"}],"predecessor-version":[{"id":36416,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/36415\/revisions\/36416"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=36415"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=36415"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=36415"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}