Is This a Bubble?

QUESTION: Mr. Armstrong,

My wife and I are trying to buy a second home. We live in Wisconsin and want a place somewhere warm. We are trying to buy in Florida, but we are financing it and we bid at the asking. However, on all of the properties, someone comes in with cash and ABOVE asking.

Are we buying into a bubble?  Is it best to wait?  I will only consider Florida because that is where you are based off of your computer.

Any guidance would be appreciated.

Best,

P

ANSWER: It does not appear to be a bubble. It is not just the real estate going up in Florida. The problem is limited supply and a mad dash out of New England, Illinois, and California. But this is taking place across the board. I was looking for a classic 328 Fararri of 1985 vintage. I use to have one in London. They were going for $50,000 on average. They are now running  $100-$150,000 in 3 months. The same is happening in collectibles and art. It simply appears that we are entering the phase of a massive shift from Public to Private assets. This is our Index we have provided to our Institutional clients over the decades. The historic low was 2009 post-1968. This trend appears to be in motion overall into 2032.

In real estate, very few places up for sale and they are selling very fast. The draconian measures in the Democratic states like New York and California have accelerated the migration out of those regions. More than 1 million people have fled New York City to Florida already. You have major chains shutting down in New York City. New Yorkers are fleeing to Florida and so are the restaurants from New York. New Yorkers are realizing that even when vaccinated, it will not return to normal. New Yorkers are even migrating to Texas. But with the Ice Storms there, they are already shifting to Florida. Places like New York City are just no longer safe as is the case now in many cities in California. Gun permits are soaring in New York because of the sharp rise in crime. Politicians do not understand anything. If you are in business and sales decline, you run sales to try to boost activity. In New York, you impose lockdowns, revenue declines, so the solution is tax taxes and fees like tolls. You can’t make up this sort of brain-dead mismanagement. On top of all of that, the lockdowns have resulted in alcohol abuse, kids committing suicide for they cannot learn remotely, the very fabric of society is being torn apart.

 

 

I personally am not thrilled about this. Traffic has increased noticeably. Please go to the east coast! Even my house has doubled in value in four years. Florida is the safe-haven in the United States with no state income tax and no ice storms and a governor who has rejected the Democrat’s lockdown agenda that destroys society and business. It reminds me of my favorite movie, Brave Heart, being of Scottish heritage. They may take our lives, but they will never take our freedom. Just sometimes, you have to stand up against tyranny or you and your posterity will lose everything.

The post Is This a Bubble? first appeared on Armstrong Economics.

Click this link for the original source of this article.
Author: Martin Armstrong


This content is courtesy of, and owned and copyrighted by, https://www.armstrongeconomics.com and its author. This content is made available by use of the public RSS feed offered by the host site and is used for educational purposes only. If you are the author or represent the host site and would like this content removed now and in the future, please contact USSANews.com using the email address in the Contact page found in the website menu.

Try a better search engine at DuckDuckGo.com.

Visit our Discussion Forum at Libertati.com.

Follow us:

Visit our Discussion Forum at Libertati.com.

Follow us:
USSA News | The Tea Party's Front Page
WP Twitter Auto Publish Powered By : XYZScripts.com