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I don't know -my sis is the real estate tycoon of the family and my son wants to buy, and she said - I'd wait a bit, the Repos are coming. She has been in BZ 20 plus yrs. My thoughts- are the Chinese and COPRs like "Invitation/American Homes" still buying by the block??
Again, real estate is local.
The rate of mortgages in serious delinquency is variable across states, within state and zip codes.
Some buyers who are ready, willing and able are attempting to balance record low interest rates vs the perception for the potential for massive foreclosures once moratoriums are lifted.
Generally speaking, foreclosures have negligible impact on local markets , unless foreclosures become the market as they did in some markets, post the pop of the bubble.
By the start of 2009 housing prices had dropped by over 50% from their peak in 2006, so the crash you refer to had already been underway for many many months.
That's the thing the effects/consequences take a while to catch up but they WILL catch up. And real estate is local but frequently simply lags national trends on the way up and DOWN.
The virus amplified existing issues and did not necessarily create them like people leaving big cities in many states. Here bordering one 6 months prior we are/were seeing boom prices because many cities over tax and have quality of life issues.. The virus here kept that trend going but there were already issues including many flipped houses were being sold to groups or co buyers. Don't need an individual or single family to buy a home but when they cannot afford a house on their own that's an issue and will eventually affect the market. The Manhattan market in NY is a perfect example of an over priced market with people fleeing. If a market is just one event away from a collapse that tells me it is/was a fragile market to begin with.
The economy will be propped until after the election. After by early 2021 expect to see interest rate, foreclosure and eviction increases which will in turn affect the rest of the economy. Sooner or later a flood of houses will drop the prices, perhaps not as catastrophic as 08-09 but they will drop. Hospitality/service is a huge part of the economy. Maybe they can't buy but they can rent. If home or apartment owner can't rent then they start failing. Throw in the tax increases that will be necessary to pay for all this. The only good news is that prices will drop and many will be able to afford to buy that couldn't in the past and groom a generation for home ownership and future house sales and all that comes with it including the appliance market which in turn could incentivize or require more domestic production and jobs.
There are sectors that will see some spikes as we get back to normal. But as long as unemployment is double digits, it will be hard to say the economy is back doing great.
There are sectors that will see some spikes as we get back to normal. But as long as unemployment is double digits, it will be hard to say the economy is back doing great.
The stimulus packages simply delayed the inevitable. The consequences have to paid one way or another.
I don't know -my sis is the real estate tycoon of the family and my son wants to buy, and she said - I'd wait a bit, the Repos are coming. She has been in BZ 20 plus yrs. My thoughts- are the Chinese and COPRs like "Invitation/American Homes" still buying by the block??
I agree with her. That was my point. Home sales are huge right now with inflated prices. It all will come tumbling down soon. Then foreclosures will spike. We saw this same thing happen back in 08-09.
I'be been increasing my rent rates due to higher and higher demand. When the housing market crashes, my rent rates will be great... for me.
This dynamic of less inventory, fueling home prices rising, is going to continue.
People are like, wel-well-well, then the delinquencies start hitting, then the forbearances
end...............sorry, Fedgov can and will keep papering-over and legislating to keep home-prices from tanking.
A minor correction in skyrocketing home prices, that is about it, no crash.
The rate of mortgages in serious delinquency is variable across states, within state and zip codes.
Some buyers who are ready, willing and able are attempting to balance record low interest rates vs the perception for the potential for massive foreclosures once moratoriums are lifted.
Generally speaking, foreclosures have negligible impact on local markets , unless foreclosures become the market as they did in some markets, post the pop of the bubble.
Agreed
"In New York City, we’ve seen property sales drop by as much as 54%. Many of those who could, fled the city months ago, and there’s no longer an influx of new residents. Vacancies are up. Rentals are down."
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