When the euphoria in flipping slows down: Culver City small home with large price tag. Sales volume continues to slow. | WHAT REALLY HAPPENED

When the euphoria in flipping slows down: Culver City small home with large price tag. Sales volume continues to slow.

People have a hard time understanding that low interest rates in today’s market are largely a reflection of a negative outlook on the economy. Central banks around the world are more concerned about financial assets and the secondary impact on real estate is just that, secondary. The market took a beating last week and you get people saying “hey, at least rates will be low for that $700,000 crap shack!” This is the kind of isolated California logic that puts people into a bubble regarding macro trends. It is also the same kind of reasoning that caught so many people off guard during the last crisis.

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