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Anyone else think investors are partly responsible for higher prices? Speculators? With the wealth divide increasing it seems investors wanting passive income plus appreciation are buying homes to rent out. This increases scarcity for people wanting to own a home. So prices go up.
Builders are going wild trying to keep up with demand, putting homes on smaller and smaller lots to maintain profit. But building costs are increasing too due to high tariffs on lumber for example, and difficulty obtaining hardware from foreign sources.
Anyone else think investors are partly responsible for higher prices? Speculators? With the wealth divide increasing it seems investors wanting passive income plus appreciation are buying homes to rent out. This increases scarcity for people wanting to own a home. So prices go up.
Builders are going wild trying to keep up with demand, putting homes on smaller and smaller lots to maintain profit. But building costs are increasing too due to high tariffs on lumber for example, and difficulty obtaining hardware from foreign sources.
Hard to tell if or when it’ll change.
In my area, it's mostly home owners who are looking for a place to live post Covid. People are fleeing apartments / condos looking for a larger space with home office, kid learning areas, etc.
And people are living longer, staying in their homes, and smaller families (divorces, single parents, etc) all needing their own space to live.
Builders have been burned and haven't built much since 2008, and simply haven't kept pace with the demographic changes.
Supply has doubled around here since early summer. They keep saying low inventory but that's not reflected in the number or listings. Some houses starting to sit.
I'm in an east coast Florida beach town with a lot of second home condos. Our inventory has been in steady decline for over a decade. We went from around 1200 MLS-listed condos in May 2006 to 150 right now.
I’m in Asheville. Inventory is at record lows and median price at record highs. Many moving here from large cities ( from northeast, and Florida). Some buying sight unseen.
Cycles, bubbles, trends etc. Sooner or later they will change. House prices already at average salary levels required to buy them so unless the down payments are hefty or it's a cash purchase the prices will flatten in most areas.
Ironically the places people are leaving the most stand a chance to make a comeback because of the firesale prices with many buildings. Throw in some more office/business buildings turning into residential the supply will go up in many cities and the prices will drop. Those can afford to leave and not dependent on their city home sale will probably be glad to just to get rid of it.
Why is lumber being imported anyway in the US? Just cheaper than American wood?
Yes and because we don't have the supply. Cutting down forests isn't exactly popular here in the US. I think a lot comes from tree farms but the land here is used for farming and other things. Almost everything we consume is imported or exported somewhere.
Anyone else think investors are partly responsible for higher prices? Speculators? With the wealth divide increasing it seems investors wanting passive income plus appreciation are buying homes to rent out. This increases scarcity for people wanting to own a home. So prices go up.
Builders are going wild trying to keep up with demand, putting homes on smaller and smaller lots to maintain profit. But building costs are increasing too due to high tariffs on lumber for example, and difficulty obtaining hardware from foreign sources.
Hard to tell if or when it’ll change.
Investors.
Low interest rates = high home prices which makes it difficult for potential home buyers (not investors) to qualify for a mortgage.
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