Saturday , 10 June 2023

Cities Where Real Estate Prices (Values) Will Drop 25-50% in 2018! (+5K Views)

We live in a global village where Central Bank policies control what happenshouse-fiscal-cliff within real estate and our Central Banks in America, Europe, Latin America, and soon Asia will gradually ‘tighten’ monetary policy via their interest rate tool. This tool will be gradual but relentless and it WILL prick this Bubble in real estate (within the year 2018). Specifically, real estate ‘values’ will drop 50% in cities such as Toronto, Vancouver and San Francisco and 25% in many other cities around the world:

The original article bDonald Swenson has been edited for length (…) and clarity ([ ]) by munKNEE.com to provide a fast & easy read. For all the latest – and best – financial articles sign up (in the top right corner) for your free bi-weekly Market Intelligence Report newsletter (see sample here) or visit our Facebook page.

Real estate ‘values’ will drop in the following eight cities (and this will be typical of major cities all around the planet):

  1. Vancouver, B.C. (we could witness a 50% drop in values by end of 2018)
  2. Toronto, Canada (we could witness a 50% drop in values by end of 2018)
  3. San Francisco, Ca. (50% drop by end of 2018)
  4. Los Angeles, Ca. (25%+ drop by end of 2018)
  5. San Diego, Ca. (25%+ drop by end of 2018)
  6. Stockholm, Sweden (25%+ drop by end of 2018)
  7. Oslo, Norway (25%+ drop by end of 2018)
  8. London, England (25%+ drop by end of 2018)

It is unnecessary to name additional cities because the above represents what will be typical all over the globe IMO. 2 websites which I follow which seems to understand this phenomena within real estate are as follows: https://youtu.be/2YBtoH4Ez9k & www.BetterDwelling.com.

Could our Central Banks change course and allow the bubble to continue? This is possible but very unlikely. Central Banks are now a global network of digital entities (interconnected) which coordinate their thinking globally. The word (from their leaders) seems to be that a ‘tightening’ must occur and this is deathly for ‘values’ and ‘affordability’.

Cap Rates increase automatically as interest rates increase. As Cap Rates increase ‘values’ decrease. It is all ‘math’…Cap Rates could double by the end of 2018 and this means that ‘values’ decline by 50%. House prices are mostly affected by this concept called ‘affordability’. As interest rates increase ‘affordability’ is restricted to large numbers of buyers. It all happens subtly but relentlessly as Central Banks control all our markets…

Get ready for huge changes later in 2018. All the hype around the Trump tax bill which becomes effective in a few days reveals that real estate was not favored in this bill. This will help to accelerate this trend of declining ‘values’ starting in 2018…

The gradual nature of change may allow many markets to avoid huge value declines early into 2018 but, as the ‘tightening’ continues over months, the end result is predictable. Central Bank policies are at the core of our change and today only a few elites control the entire global market. We live with a corrupted financial system which few comprehend. Watch what the Central Banks do and then follow the money as if flows from market to market.

As this concept called ‘value’ changes our markets, the general economy gets directly affected and our stock markets will also get affected. (As real estate goes…so goes the general economy.) We will likely see a crash in these stock indices some time in 2018…

Watch what happens within America’s Federal Reserve System as new members seek to change policies and trends in 2018. Follow the digital money! Enjoy!

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4 comments

  1. “Could” is a weasel word that has virtually no meaning. Prices “could” also increase 25-50% in all of your example cities, or they “could” drop only 2%. You offer no logical explanation for why prices “could” drop 50% in Vancouver, and 25% in Los Angeles. I predict that your article will turn out to be totally wrong.

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