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The housing market crisis in America

jmanz said:
It'll go back to 5% without question. Everything goes in streaks. The bigger question is how long it will take to get there.
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I actually believe the 5% forever myself. It's like when other prices went back up. Do you really think they will just lower it back down to what they were? They will dip down just like gas does, but they will never go back to what they originally were. It's the old carrot on the stick stuff I talk about. Almost there, almost there, ah so close...
 
nodle said:
I actually believe the 5% forever myself. It's like when other prices went back up. Do you really think they will just lower it back down to what they were? They will dip down just like gas does, but they will never go back to what they originally were. It's the old carrot on the stick stuff I talk about. Almost there, almost there, ah so close...
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Forever is a long time, especially when talking about rates. There is no certainty on anything. Just a severe recession or banking crisis away from 3-5% rates again. So I like your positivity!
 
I have been reading that people are predicting home prices to plummet 40% in 2024.
 
nodle said:
I have been reading that people are predicting home prices to plummet 40% in 2024.
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The only way this happens is if mortgage rates drastically reverse and go higher (they are on the way down now) or home supply goes way up due to home builders going crazy. Not that I'm against home prices going down by any means, (for the next generation and also property taxes), but nothing is budging at the moment due to lack of available homes. And when rates go down, the bidding wars heat up causing the house prices to go up again. It's quite the conundrum.
 
I talked to some home builders the night before last. They already have 4 homes lined up to build next year, he said (at least for our area) there hasn't been a slowdown. But again, we live in a niche area. The problem around here is the lack of subdivisions or lots to build on. The town is landlocked due to ranches not wanting to give up their land and also conservation easements.
 
They are still building here as well, mainly custom builds. Builders are constrained by higher rates as well and don't want to let things sit long.
 
jmanz said:
They are still building here as well, mainly custom builds. Builders are constrained by higher rates as well and don't want to let things sit long.
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The builder said that most of their homes are sold before they are even built. But then again there are not many other building companies here may 3 more located in town. I know the average rent is about $1,200 a month here. Which considering what the pay is, is way out of balance.
 
nodle said:
The builder said that most of their homes are sold before they are even built. But then again there are not many other building companies here may 3 more located in town. I know the average rent is about $1,200 a month here. Which considering what the pay is, is way out of balance.
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I forgot to mention along with custom builds, apartment buildings and duplexes are going up in the new developments steadily.
 
jmanz said:
I forgot to mention along with custom builds, apartment buildings and duplexes are going up in the new developments steadily.
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That's because no one can afford a home anymore. It will be rentals for the majority of the new generation for the rest of their lives, sadly.

What we are seeing around here even more than apartment buildings, is more and more RV spots going in, and people are living in their RVs more than rentals. RVs are becoming the new homes around here.
 
nodle said:
That's because no one can afford a home anymore. It will be rentals for the majority of the new generation for the rest of their lives, sadly.

What we are seeing around here even more than apartment buildings, is more and more RV spots going in, and people are living in their RVs more than rentals. RVs are becoming the new homes around here
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We haven't hit RV level here yet haha. Since we are near a college town, rental houses and apartments are huge for investors here. A friend of mine and his dad own over 100 houses/complexes. Crazy. Big business.
 
jmanz said:
We haven't hit RV level here yet haha. Since we are near a college town, rental houses and apartments are huge for investors here. A friend of mine and his dad own over 100 houses/complexes. Crazy. Big business.
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Ya rentals are big here as well. The locals with money seem to be buying up the homes that come up for sale, just to turn them into rentals. It's hurting people that are wanting to purchase a home for themselves.
 
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