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When I look at local real estate appreciation here in northeast TN, I have to shake my head.
Nothing has fundamentally changed from pre-COVID. If anything, the local economy is weaker, and it’s not like we are getting the huge amount of out of area interest than somewhere like FL gets. Our population is essentially stagnant. There isn’t much in the way of good jobs here. It’s not like people are beating the doors down to get here.
Using standard metrics during Covid is pointless. Sales are drastically down everywhere. Many houses being sold during the covid are far more expensive houses than average. Average people are staying put for the time being. Stats lie.
I wonder myself when the moratorium is lifted on foreclosures what that will do to the market. Sooner or later the crap is going to hit the fan. One can only look to the melt down in 2009 to see if it mirrors what will happen in the near future. The CBO estimates that this disaster will take ten years to recover from.
I am not worried. This Administration is ready to give out more freebies like $2,000 stimulus checks and repeat it often, plus it doesn't cost them a penny to continue the morgage & eviction moratorium. Stop the eviction and the foreclosure, you'll delay the massive amount of houses coming on the market. You'll solve the oversupply problem. That's what a Socialist government does - gives out more money to the point where things go crazily expensive because the devaluation of its currency. We have Venezuela to look forward to.
So if anything I predict the housing prices will continue to go up - and so will the price of bread & gasoline.
Yes this is what I meant, better worded haha. But yeah what happens when these evictions stays run out and people start to be forced out. Will the homed be bought up/rented out again quickly at current market rates or will there be too much supply and a drop.
Most rental stock is in a multi-family dwelling, not a single family home. That isn’t to say that there won’t be foreclosures, but even before all this started, the time ranged between about six months for the shortest states to over 3 years in the longest states. I imagine that if there is a backlog, that time will only be increased. Banks also learned from the first foreclosure crisis that they don’t want to release all the foreclosures into the market at the same time. I know in my neighborhood (within a few blocks), one rental home was already re-let and another was sold since this summer. It’s not like people are not moving.
There is also a lot of demand now for people who were in the city and are wanting to move out because their employers aren’t planning on having them go back to the office regularly in the foreseeable future. As more companies make permanent changes to telework, that demand may increase.
When I look at local real estate appreciation here in northeast TN, I have to shake my head.
Nothing has fundamentally changed from pre-COVID. If anything, the local economy is weaker, and it’s not like we are getting the huge amount of out of area interest than somewhere like FL gets. Our population is essentially stagnant. There isn’t much in the way of good jobs here. It’s not like people are beating the doors down to get here.
At some point, it makes no sense.
Same thing going on here in Cookeville. A house in our neighborhood went on the market due to the death of the owner. Listing lasted four days and it sold for over the asking price. Everywhere I look around here, new homes are going up. It is a bit crazy to me.
Last edited by JRR; 01-23-2021 at 12:33 AM..
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