Real Estate Trends
As the productivity in this nation continues to turn down and resources become more scarce, housing costs will become an ever increasing problem for many families. As we have mentioned in previous articles, the government has created a massive Ponzi scheme with the underfunded Social Security, Medicare and Medicaid programs which will result in significant inflation. With significant inflation and tighter controls on credit, finding affordable housing or rentals is expected to be more difficult in the future. This will increase the number of homeless on our streets. Interest rates will soar. The number of people who can make the high mortgage payments will decrease bringing values down, but not prices.
Large square footage homes in the suburbs will be a risk primarily because many will find themselves facing reduced incomes precipitated by a decline in productivity. The productivity decline is caused by the large tax burden (direct and indirect) placed on the goods and services produced by this nation. If too many people move out of a community, the tax revenue will not be able to provide essential, emergency services. This would cause more people to move away because they would no longer feel safe or protected. (more…)
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