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Old 05-12-2021, 11:34 PM
 
Location: Seattle
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Quote:
Originally Posted by NORTY FLATZ View Post
Anyone think the cost of $$$ may rise enough to soften the demand?

Maybe make pricing soften, too?

I'm hearing the "inflation" word being bandied about lately.

10-year note got stronger, on inflationary news, today....
People are OVERESTIMATING the supply of buyers that can actually afford to buy in today’s next to impossible market. Sure you have foreign buyers and corporations buying up property. But it’s not a net win for the latter unless you can rent those properties out profitably. Right now it looks good because property values are skyrocketing. But eventually the masses of people that sellers depend on for demand are going to dry up because they’ve bought all the homes.

Home ownership is at historically high levels as it is. I expect it will inch up even more but eventually you’re going to run out of prospective buyers because most people will be either qualified and unwilling (like me) to buy or unqualified and thus unable (lower/lower middle class) to buy. Especially in markets where the home value to income/rent ratio is unsustainably high.
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Old 05-13-2021, 02:45 AM
 
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Running out of buyers only means appreciation slows down ..it does not mean prices must fall
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Old 05-13-2021, 03:27 AM
 
Location: Florida
5,774 posts, read 1,676,675 times
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Quote:
Originally Posted by NORTY FLATZ View Post
Anyone think the cost of $$$ may rise enough to soften the demand?

Maybe make pricing soften, too?

I'm hearing the "inflation" word being bandied about lately.

10-year note got stronger, on inflationary news, today....
Probably not, because this is when developers will come in and gobble up the land, fix up the homes or just knock them down and put a duplex up and then charge sky high on rent.
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Old 05-13-2021, 02:50 PM
 
Location: Sandy Eggo's North County
3,646 posts, read 1,367,527 times
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Quote:
Originally Posted by warhorse78 View Post
Probably not, because this is when developers will come in and gobble up the land, fix up the homes or just knock them down and put a duplex up and then charge sky high on rent.
It won't be duplex's. It'll be "100-plexes" LOL!

Maybe 1000-plexes...
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Old 05-13-2021, 03:43 PM
 
345 posts, read 334,697 times
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I read somewhere that gen X actually got the crappiest deal. They were at the height of their house buying years in the run up to the housing crash of 2008 and many of them never completely recovered financially. I think they are also the first generation that had more meaning amounts of student loan debt, and they were part of the generation that saw years of wage stagnation (again during many of their peak earning years).

Generally though I think only the baby boomers were really winners in real sense, and suspect many of them would argue buying a home with 20% interest on the mortgage made them unlucky.

I do think part of the demand is from people who can or do work remotely at least 2-4 days a week. If you lived somewhere because of the commute, and then if you find you don’t have to commute and/or only commute a couple days a week, then you may re-evaluate your priorities. A lot of people sacrificed space for proximity to work, and when they discovered proximity to work didn’t matter they prioritize space and moved out.
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Old 05-13-2021, 06:22 PM
 
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Just throwing this out there but there several and i mean more then twenty homes for sale in fort dodge Iowa for under $200,000. Not crappy ones either. So there are homes to be had.
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Old 05-14-2021, 12:59 AM
 
Location: Seattle
7,807 posts, read 7,799,783 times
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Quote:
Originally Posted by mathjak107 View Post
Running out of buyers only means appreciation slows down ..it does not mean prices must fall
Okay tell that to Toronto.


https://m.youtube.com/watch?v=p5U9mV7ombQ&t=236s

Yeah, Canada is a different country I get it. It’s the most similar country to the US. But IMO Canada has been a bit of a bellwether for the US in the past 10 years or so and since there’s less people things happen more quickly there in terms of ups and downs. Demand is down AND home prices are down, despite historically low interest rates in that country and during what is normally the hottest time of the year for home buying. Why? All of the buyers that were willing and able to buy in the Greater Toronto Area already did. And nobody is willing or able taking their place.
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Old 05-14-2021, 04:26 AM
 
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We ain’t Toronto ….and that is local conditions anyway …that is what is said , local conditions dictate prices not rates or ratio of buyers to sellers ..if there are 100 homes for sale and only one has that wife factor that is the home that sells and gets top dollar and the rest mean nothing.

Many areas are going in to bidding wars on the nice stuff and the rest sits unsold
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Old 05-14-2021, 06:14 AM
 
Location: Seattle
7,807 posts, read 7,799,783 times
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Quote:
Originally Posted by mathjak107 View Post
We ain’t Toronto ….and that is local conditions anyway …that is what is said , local conditions dictate prices not rates or ratio of buyers to sellers ..if there are 100 homes for sale and only one has that wife factor that is the home that sells and gets top dollar and the rest mean nothing.

Many areas are going in to bidding wars on the nice stuff and the rest sits unsold
I understand there’s different markets... but a lot, I’d say the majority are very frothy right now just as Toronto was until recently.
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Old 05-14-2021, 09:32 AM
 
Location: Phoenix, AZ
3,709 posts, read 1,932,461 times
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Quote:
Originally Posted by nachofries View Post
Just throwing this out there but there several and i mean more then twenty homes for sale in fort dodge Iowa for under $200,000. Not crappy ones either. So there are homes to be had.

Fort Dodge has an airport, a country club and a community college. Well, pack my bags.
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