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The only reason the bubble burst was due to overleverage.

Houses were only sold en masse due to a prescribed flowchart: borrower couldnt pay, bank takes house, bank doesnt want actual houses so bank sells house, bank already earned enough on interest to sell house at a loss, bank can also take losses and list property for lower to sell faster, bank found out it couldn't take losses.

This isnt happening right now. The overleverage isnt in real estate. Everyone is looking in the wrong direction just because price go up.



My theory for a possible price correction is that those buying places with the intent of becoming landlords will be unable to find tenants that can make the house purchase profitable.


Or now there's 6 people living in 3 bedroom home because rent is so so sooo high...


Where is the overleverage, though?


Where is the overleveraging now?




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