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What makes no sense is how there can be so many fewer homes for sale everywhere in the nation than there are people who want to buy new ones. That's impossible. There either has to be a mass exodus in particular locations or balanced markets in more locations. Where are the people moving from? Mars? There has been no explanation anywhere for this.
What makes no sense is how there can be so many fewer homes for sale everywhere in the nation than there are people who want to buy new ones. That's impossible. There either has to be a mass exodus in particular locations or balanced markets in more locations. Where are the people moving from? Mars? There has been no explanation anywhere for this.
A lot of people who want to move are keeping the homes they own and renting them out for income.
A lot of people who want to move are keeping the homes they own and renting them out for income.
Quote:
Originally Posted by Leonard123
What makes no sense is how there can be so many fewer homes for sale everywhere in the nation than there are people who want to buy new ones. That's impossible. There either has to be a mass exodus in particular locations or balanced markets in more locations. Where are the people moving from? Mars? There has been no explanation anywhere for this.
Also, extremely low interest rates have allowed some renters to be able to afford to buy homes, thus increasing the demand.
What makes no sense is how there can be so many fewer homes for sale everywhere in the nation than there are people who want to buy new ones. That's impossible. There either has to be a mass exodus in particular locations or balanced markets in more locations. Where are the people moving from? Mars? There has been no explanation anywhere for this.
Not really. All it takes is for houses to sell faster to cut the number of houses for sale at any given time while total sales remain the same.
Also consider that many homeowners took advantage of lower interest rates to refinance, which solidifies their holding on a property, too. It's tough to rationalize selling out when you just dumped thousands of dollars to lower your interest rate.
Buy and hold, so to speak. Gotta wait for the boomers to start dying off to free up some inventory.
I think that the long term trend on number of sales is going to be downward. Fewer people need to move because of a job transfer or taking a new job. They can often do the new job from the same house that they did the old job. Going in to the office every day is going to become less and less of a factor in our society... especially for mid-upper income bracket workers. Blue collar jobs will still require showing up at some place/site to work.
I also think that there will be an increase in multi-unit apartment buildings because fewer single family homes will be available for rent, and many who rent can't afford to buy. Availability of single family houses will remain scarce. People will hold onto their houses much longer (on average).
Probably not a good time to go into Real Estate sales for most people. Commission rates are likely to continue a downward trend. When combined with fewer sales, the real estate business may face some rough years ahead. More people shopping for homes online. Greater competition from these online sites and large discount buyers means fewer and smaller commissions for the sales agents. Other than that, everything looks GREAT for real estate sales.
People have been saying this since at least the early 90s that by 2020 Long Beach island NJ would be completely underwater. Yet literally nothing has changed. If it was supposed to be “completely underwater” by now you’d think this would be at least partly underwater, but it’s not. The beach front homes are all still standing, the bay front homes are all still standing. And democrat politicians are still buying beachfront homes too.
When I was in elementary school in the 80's, we were told over and over that one day California was going to fall into the ocean from all of their earthquakes....here we are 40ish years later and no signs of it falling off the continent into the ocean.
I think that the long term trend on number of sales is going to be downward. Fewer people need to move because of a job transfer or taking a new job. They can often do the new job from the same house that they did the old job. Going in to the office every day is going to become less and less of a factor in our society... especially for mid-upper income bracket workers. Blue collar jobs will still require showing up at some place/site to work.
I also think that there will be an increase in multi-unit apartment buildings because fewer single family homes will be available for rent, and many who rent can't afford to buy. Availability of single family houses will remain scarce. People will hold onto their houses much longer (on average).
Probably not a good time to go into Real Estate sales for most people. Commission rates are likely to continue a downward trend. When combined with fewer sales, the real estate business may face some rough years ahead. More people shopping for homes online. Greater competition from these online sites and large discount buyers means fewer and smaller commissions for the sales agents. Other than that, everything looks GREAT for real estate sales.
I don't know. I realize it's only anecdotal, but looking at the forums here, it seems many people are in fact relocating for jobs and rather high paying ones at that. People could not afford the home prices on blue collar jobs. Many are claiming jobs are the reason for the crazy markets. I have not seen data on demand for homes in more rural areas, but my guess is that's is not as high as in the larger cities and suburbs.
If it is true that buying and selling is balanced but happening on a faster pace, then I have to wonder if people engaging in this "impulse buying" are going to come to regret their purchase. Regardless, if fewer people are selling in this kind of market, fewer will be buying. I would think most renters would have an affordability problem and most people would want to see a house and at least the neighborhood in person before they bought. None of the explanations I've read or heard about add up.
It will be interesting to see what happens in the new construction market. Materials costs are going to have to level off at some point. It's an open question whether more supply of existing homes would ease pressure on the builders.
If it is true that buying and selling is balanced but happening on a faster pace, then I have to wonder if people engaging in this "impulse buying" are going to come to regret their purchase. Regardless, if fewer people are selling in this kind of market, fewer will be buying. I would think most renters would have an affordability problem and most people would want to see a house and at least the neighborhood in person before they bought. None of the explanations I've read or heard about add up.
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My 100% anecdotal experience this past 12 months suggests that there will be a certain % of buyers' regret among especially those that moved to areas under the assumption of WFH forever. At some point ya gotta want to live where you live and I think some might wonder about that once they're not so house-bound.
People are voting with their feet, leaving poorly run, locked down, high tax states - often with bad weather - for greener pastures.
Add to that current monetary policy and an inflation metric deliberately designed to hide it and you have our current situation.
It's not just housing, everything has gotten much more expensive.
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