Will the market crash in the near future?

Question

Is the clock ticking on the amout of time I have to enjoy the equity I have in my home? I have been listening to Robert Kiyosaki's predictions after the trump election. Real Estate Prices in general have been inflating faster in the last few years then peoples salaries and many people are still expecting huge gains to come in the near future. I am a newbie investor and would like to find some good Brrr deals or some fix and flips in the next few years, But I want to know does anyone else predict a crash in market prices and a rise in interest rates with in 2-3 years?

Will Poon · Answer

This questions comes up very often. The answer is always- no one knows. If they give you an yes/no answer they do not know what they are speculating. If there was a real answer, there would be market corrections and prices would reflect.

With that said- you must look at your financial situation. Risk appetite vs reward. Draw out different scenarios.

With that said- you must look at your financial situation. Risk appetite vs reward. Draw out different scenarios.

Jason H. · Answer

In my opinion my area has been stagnant for a few years and finding a good deal that the banks will let go of has been tough. I am thinking this is prime time to sell before the market is corrected and starts to decline. Maybe just a little, Maybe a lot but definitely more so on the down turn.

Will Poon · Answer

Sounds like you made up your mind before you posted lol

Will Poon · Answer

I do not think there will be a big drop in prices for a few reasons.

1. Thanks to Dodd Frank. Bank balance sheet is very expensive. A lot of collateral must be held vs its investments. This is to prevent bubbles and restrict over investment.

2. Low Fed rates have become the norm. Any sudden and significant increase will cause distruptions which the Fed will avoid.

3. Jobless claims are low resulting in more people competing for the same house.

Diane G. · Answer

while I wholeheartedly believe in "no one knows", my guess is that market will be stagnant for a while 3-5 years out from here..No easy profit to be made, but no 2008 style crash either, thanks to the tight lending

Will the market crash in the near future?

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