Call it a Housing Bubble or Not “Current Situation is Untenable” – Manufactured Housing, Housing Bubble Experts Debate What’s Ahead; Plus Manufactured Home Stock Updates
“Whether we call it a housing bubble or not, the current situation is untenable. Prices are rising, homeownership is increasingly out of the reach of many Americans, and the alternative (renting) is also increasingly expensive, especially in the most job-rich parts of the country,” said left-leaningVOX on June 7, 2021. In a prior interview on CNBC, billionaire Jeff Greene made “a fortune” betting against the housing market in the runup to the 2008 housing/finance crash. In answer to the question, are we in a housing bubble now? Green said: “Absolutely. I think we’re in an omni-bubble. How long does it last? It depends. How long do you keep the faucet open and this money running?”
Billionaire Jeff Greene made a fortune betting against the housing market over a decade ago before it crashed.
He told CNBC on Friday he believes the hot housing market is in a bubble once again.
he believes the current housing market is in a bubble.
“Absolutely. I think we’re in an omni-bubble. How long does it last? It depends. How long do you keep the faucet open and this money running?” billionaire Jeff Greene said
To be clear, there are those who insist that this is different than 2008. The toxic liar loans are not part of the current mix, some housing pros point out. There may be more voices in that camp than among those who say – like Greene – that we are indeed in a housing bubble already.
Per left-leaning MarketWatch: “As with the surge in demand, the rise in home prices isn’t artificial, unless you consider the coronavirus pandemic a temporary and/or artificial force fueling house prices. … Home builders have only ramped their operations back up in the last couple of years, experts say;” on April 21, 2021.
But what is a housing bubble?
Investopedia describes it this way. “A housing bubble, or real estate bubble, is a run-up in housing prices fueled by demand, speculation, and exuberant spending to the point of collapse. … At some point, demand decreases or stagnates at the same time supply increases, resulting in a sharp drop in prices—and the bubble bursts.”
In a July 8, 2021 article on Yahoo news about housing and the talk of a bubble, it opens like this. “In 2008, a housing bubble that had been inflating since 2004 inhaled its last breath and finally popped — and what a pop it was. The financial markets lost 30% of their value as foreclosure signs sprung up on front lawns across the country. The economy buckled under the weight of a credit crisis, mortgage crisis, banking crisis, employment crisis and housing crisis.”
Yahoo noted that there are concerns that the U.S. is in, or soon will be in, a housing bubble. It then explained a bubble in this segment of their report.
What Is a Housing Bubble?
A “bubble” forms when an already hot housing market — like the one America has been experiencing for months — becomes inflated with artificially and unsustainably high prices.
It all starts when demand for housing increases and supply starts to dwindle, a dynamic that can only lead to rising prices. As inventories fall, desperate buyers start spending even more money on houses that by this point are selling well above market value. That’s blood in the water for speculators, who then flood the market with more money as they try to cash in on the trend. Eventually, buyers give up, demand craters and prices plummet back to Earth — that’s when the bubble bursts.
What remains is a landscape of people trapped in houses that are now worth far less than the amount of money they borrowed to pay for them, their equity negative, their mortgages underwater.” … ##
For emphasis, what Yahoo stated in those last two sentences merits repeating.
“Eventually, buyers give up, demand craters and prices plummet back to Earth — that’s when the bubble bursts.”
“What remains is a landscape of people trapped in houses that are now worth far less than the amount of money they borrowed to pay for them, their equity negative, their mortgages underwater.”
Is there something that might be done? Perhaps. This is where manufactured housing, and our industry’s politics, comes into focus.
For context, let’s recall what Mark Weiss, J.D., President and CEO of the Manufactured Housing Association for Regulatory Reform (MHARR) said in recent comments in a report to MHARR members on the underlying insight from a recent Freddie Mac report.
The report from which the comments above are round is linked here. he graphic above and some others can be opened to a larger size in many browsers. Click the image once to open a new window, and then click that image again to see the larger size.
MHProNews has been saying for some time that elements of both opportunities and obstacles are lining up.
Based upon years of the most recent history, a change by MHI and their leadership appears doubtful, unless something compels them to do so. That said, if MHI wanted to make amends, so to speak, to millions of consumers and thousands of arguably betrayed industry professionals, this is the time.
Ironically, the case could be made that conventional housing owners ought to want a surge in manufactured homes. Why? Because only more supply is going to mitigate what many think is an overheating and “unsustainable” mainstream housing market.
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Next up is our business daily recap of yesterday evening’s market report and related left-right headlines.
The Business Daily Manufactured Home Industry Connected Stock Market Updates. Plus, Market Moving Left (CNN) – Right (Newsmax) Headlines Snapshot. While the layout of this business daily report has recently been modified, several elements of the basic concepts used previously are still the same. The headlines that follow below can be reviewed at a glance to save time while providing insights across the left-right media divide. Additionally, those headlines often provide clues as to possible ‘market-moving’ items.
Several of the illustrations shown in this report can be opened in many browsers to reveal a larger size. To open this picture, click the image once. When the window opens, click it again to reveal the larger size photo. Use your browsers back key to return to the article. Senator Mike Lee (UT-R) has accused the Biden team of implementing policies that harm the poorest and middle class more while enriching the wealthy. Weeks before others in the mainstream media began to flash their ‘inflation warnings,’ MHProNews added first the top, then later the second notice above. When someone has even a basic understanding of the principles of economics, ‘inflation’ was predictable. The question is, will hyper-inflation follow? There are voices on both sides of that debate.
Headlines fromleft-of-center CNN Business = evening of 7.27.2021
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By carefully tracking the various statements and claims, past or present, by Warren Buffett, Kevin Clayton, Clayton Homes, MHI, et al, MHProNews is able to demonstrate the apparent disconnects between their prior claims and their later deeds. The same principle applies for mainstream media that is agenda driven.
During both Democratic and Republican administrations, despite claims by both that they desire to see more home ownership, the overall rate in the U.S. is lower today than in 2000. This is but one of several possible examples of why failure to implement the 2000 Reform law matters. https://www.manufacturedhomepronews.com/whistleblower-hud-nominee-marcia-fudge-senators-collusion-coordinated-by-manufactured-housing-institute-video-mhi-evidence/ When people look at the economic data, facts like the above reflect well on the success of Trump Administration policies. Why does the richest nation on earth have a comparatively low rate of home ownership? One possible answer – the system has been rigged. That is said by voices on both sides of the two major party system. The question is, what are the details of how the system is rigged? Then, how does one correct a rigged system? To see this graphic full size, click to download and then open.
Manufactured Housing Industry Investments Connected Equities Closing Tickers
Some of these firms invest in manufactured housing, or are otherwise connected, but may do other forms of investing or business activities too.
NOTE: The chart below includes the Canadian stock, ECN, which purchased Triad Financial Services, a manufactured home industry lender
NOTE: Drew changed its name and trading symbol at the end of 2016 to Lippert (LCII).
NOTE: Deer Valley was largely taken private, say company insiders in a message to MHProNews on 12.15.2020, but there are still some outstanding shares of the stock from the days when it was a publicly traded firm. Thus, there is still periodic activity on DVLY.
Berkshire Hathaway is the parent company to Clayton Homes, 21st Mortgage, Vanderbilt Mortgage and other factory built housing industry suppliers. · LCI Industries, Patrick, UFPI, and LP each are suppliers to the manufactured housing industry, among others. · AMG, CG, and TAVFX have investments in manufactured housing related businesses. For insights from third-parties and clients about our publisher, click here. Enjoy these ‘blast from the past’ comments.
MHProNews. MHProNews – previously a.k.a. MHMSM.com – has celebrated our 11th year of publishing, and is starting our 12the year of serving the industry as the runaway most-read trade media.
Sample Kudos over the years…
It is now 11+ years and counting…
Learn more about our evolutionary journey as the industry’s leading trade media, at the report linked below.
· For expert manufactured housing business development or other professional services, click here.
· To sign up in seconds for our industry leading emailed headline news updates, click here.
Disclosure. MHProNews holds no positions in the stocks in this report.
All on Capitol Hill were welcoming and interested. But Congressman Al Green’s office was tremendous in their hospitality. Our son’s hand is on a package that included a copy of the Constitution of the United States and other goodies. Tamas has grown considerably since this photo was taken.
By L.A. “Tony” Kovach – for MHProNews. Tony earned a journalism scholarship along with numerous awards in history. There have been several awards and honors and olso recognition in manufactured housing. For example, he earned the prestigious Lottinville Award in history from the University of Oklahoma, where he studied history and business management. He’s a managing member and co-founder of LifeStyle Factory Homes, LLC, the parent company to MHProNews, and MHLivingNews.com. This article reflects the LLC’s and/or the writer’s position, and may or may not reflect the views of sponsors or supporters.
