I bought an older house north of Houston 1.5 years ago. While I was 'shopping' I found several large, new housing sub-divisions (100s of houses) being built where none of the houses were for sale, only for rent/lease once they completed construction.
Sure but I mean developers aren't interested in renting, I don't think. Maybe a huge one like Pulte can afford it. Normal developers want to get out quickly because they probably borrowed the money to build and are paying the juice on it. They want to cash out and go build some more stuff to make some more money.
Hard to say what correction will be. Will it just be a "cooling?"
Inflation is probably going faster then the drop of buyers who can no longer afford.
We think lots of millennials priced out of the market as home prices have grown at an exponential rate but there's 46 million of them right now aged 25-35. That's a lot of prospective first time home buyers.
1 in 4 sales are in cash right now. Tells us lots of cash still on sidelines, waiting to be used.
Interest rate is still low. Its not dirt cheap like it was 5 months ago but its still cheap money.
You have to consider many people have locked in a low rate and can ride out a correction even if one came.
Also every time fed signals they will raise rates, it will cause a flurry of more buyers jumping in to get in before the next hike. This will keep happening until it reaches doesn't make sense to buy a home.
But even if interest rate is 10%, then that still beats inflation.
The only thing that would stop home buying is mass layoffs and mass recession.
Literally every last straggler with a busted property is about to list. A long with the over supply of new construction about to be finished. Plus interest rates going up another percent over the next 2 months. Buying in the fall is probably good.
I guess we'll see. IMHO it depends where you are; if you are in the midwest you might not see a swing too large.
Also don't forget that one of the groups buying property has infinite money at very low rates; If you have a zero percent loan then you can rent out a $1M house for $1000 and still make a profit, don't forget it.
A month ago I offered people here to buy my Blue Ridge Mountains home for a discounted price. It sold in 2 days for $40k over market price. Nice! After buying my next home out of state, I'll still have enough to buy 2 more homes, but will just sit on that money until the next crash. Buckle up!
[ + ] Splooge
[ - ] Splooge 13 points 2.0 yearsMay 25, 2022 12:36:51 ago (+13/-0)
[ + ] SecretHitler
[ - ] SecretHitler 12 points 2.0 yearsMay 25, 2022 12:55:33 ago (+12/-0)
But, if what OP says is true, then you can always buy a second property as a rental investment after prices drop.
"I like you voat" - This is the biggest red flag you will ever hear when someone is giving you advice involving money.
[ + ] gimpyoldman
[ - ] gimpyoldman 4 points 2.0 yearsMay 25, 2022 11:59:36 ago (+4/-0)
[ + ] lord_nougat
[ - ] lord_nougat 4 points 2.0 yearsMay 25, 2022 12:56:07 ago (+4/-0)
[ + ] bonghits4jeebus
[ - ] bonghits4jeebus 0 points 2.0 yearsMay 25, 2022 15:54:31 ago (+0/-0)
[ + ] gimpyoldman
[ - ] gimpyoldman 1 point 2.0 yearsMay 25, 2022 21:00:56 ago (+1/-0)
[ + ] bonghits4jeebus
[ - ] bonghits4jeebus 0 points 2.0 yearsMay 25, 2022 23:07:52 ago (+0/-0)
[ + ]deleted
[ - ] deleted 2 points 2.0 yearsMay 25, 2022 21:15:28 ago (+2/-0)
[ + ] lord_nougat
[ - ] lord_nougat 2 points 2.0 yearsMay 25, 2022 12:55:31 ago (+2/-0)
[ + ] observation1
[ - ] observation1 1 point 2.0 yearsMay 25, 2022 16:17:02 ago (+1/-0)
Inflation is probably going faster then the drop of buyers who can no longer afford.
We think lots of millennials priced out of the market as home prices have grown at an exponential rate but there's 46 million of them right now aged 25-35. That's a lot of prospective first time home buyers.
1 in 4 sales are in cash right now. Tells us lots of cash still on sidelines, waiting to be used.
Interest rate is still low. Its not dirt cheap like it was 5 months ago but its still cheap money.
You have to consider many people have locked in a low rate and can ride out a correction even if one came.
Also every time fed signals they will raise rates, it will cause a flurry of more buyers jumping in to get in before the next hike. This will keep happening until it reaches doesn't make sense to buy a home.
But even if interest rate is 10%, then that still beats inflation.
The only thing that would stop home buying is mass layoffs and mass recession.
[ + ] WhiteGoat
[ - ] WhiteGoat 0 points 2.0 yearsMay 25, 2022 16:34:06 ago (+0/-0)
[ + ] bonghits4jeebus
[ - ] bonghits4jeebus 1 point 2.0 yearsMay 25, 2022 15:53:08 ago (+1/-0)
[ + ] yesiknow
[ - ] yesiknow 1 point 2.0 yearsMay 25, 2022 15:10:47 ago (+1/-0)
[ + ] 1Icemonkey
[ - ] 1Icemonkey 1 point 2.0 yearsMay 25, 2022 14:47:36 ago (+1/-0)
[ + ] Unreasonable
[ - ] Unreasonable 1 point 2.0 yearsMay 25, 2022 13:05:11 ago (+1/-0)
[ + ] MaryXmas
[ - ] MaryXmas 1 point 2.0 yearsMay 25, 2022 11:58:29 ago (+1/-0)
You can sell.
[ + ] pshawman
[ - ] pshawman -1 points 2.0 yearsMay 25, 2022 16:26:14 ago (+0/-1)
[ + ] DrunkenShenanigans
[ - ] DrunkenShenanigans 0 points 2.0 yearsMay 26, 2022 12:46:35 ago (+0/-0)
[ + ] GoldenAgeWhen
[ - ] GoldenAgeWhen 1 point 2.0 yearsMay 25, 2022 11:34:56 ago (+1/-0)
Also don't forget that one of the groups buying property has infinite money at very low rates; If you have a zero percent loan then you can rent out a $1M house for $1000 and still make a profit, don't forget it.
[ + ] Anus_Expander
[ - ] Anus_Expander 0 points 2.0 yearsMay 25, 2022 17:01:21 ago (+0/-0)
[ + ] Panic
[ - ] Panic 0 points 2.0 yearsMay 25, 2022 16:53:48 ago (+0/-0)
[ + ] Not_a_redfugee
[ - ] Not_a_redfugee 0 points 2.0 yearsMay 25, 2022 16:33:05 ago (+0/-0)
[ + ] Breeder
[ - ] Breeder 0 points 2.0 yearsMay 25, 2022 13:02:57 ago (+0/-0)