- Developers of residential properties are all out on the streets to sell their ware
- Skyrocketing rents are forcing people to go with the flow of the buyers demands, however unreasonable
- Due to inventory being in the red (12 days in Silicon Valley) the price keep on getting steeper
Another endorsement on the extreme situation of the realty sector are talks about Apple (AAPL) and its plans to construct a second new research and development campus that will cry out for 20,000 new high-tech employees.
Even if the prices appear to be steep at present, we can be convinced that we are on the threshold of entering a long-term materialistic bullish market in residential real estate.
Any real estate buy that you make now is going to make you look like the ‘Man Who Saw Tomorrow’ ten years down the line.
The best is still to be seen and experienced. Demographics, obviously will be running the show.
In the American context, beginning 2022 onward, 65 million Gen Xer’s will be accompanied by 85 million latecomers in an auction clash for the same homes. That will give birth to a bazaar of 150 million investors, never seen before in the history of the US realty market.
At the same time as, 80 million first takers, net sellers and shredders of homes for the last 10 years, will gradually cease to exist and fade away from the landscape as an unfavorable effect. Just about one third are still in operation.
The biggest bubble to burst here is that 5 million homes disappeared into thin air in the works this decade, which was fueled by the financial crisis. They were never really constructed.