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The Housing Market

Two years later, the story is the same

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Gary Shilling explains

I'm still running into people who think that real estate is a good place to put their money (in 2014)

But that's the way markets go.

Society at large won't fully get it until there is real blood in the streets and as bad as the real estate collapse has been for millions, there are still millions for whom the glow of "home ownership" still shines.

The take away from this interview:

"Home ownership is not a good idea unless you have rapid appreciation."

The odds of "rapid appreciation" or real estate prices in the US - or any appreciation at all - are very long. Indeed for the next many years, decline is at least as likely, if not far more likely.

Buying real estate now - unless it is a very, very special situation (ex. a gem at 40% or more below today's market market) - strikes us as a very bad gamble to take right now regardless of Realtor, politician, and news media baloney.

You could very well be putting yourself underwater as badly or as worse as the millions - yes, millions - who are currently making payments on houses that are worth less, some times far less, than the amount of money they borrowed to buy them.

Life's hard enough without shooting yourself in the foot financially this way.