6 months straight of price increases capped off May '23

[NORTY FLATZ]

There's "Mr. Bubble!"

[kettlepot]

Originally Posted by San Diego F.C.

It’s Over! Era of Cheap Money and artificially low interest rates is GONE and you will NOT see it again in your lifetime. There will be NO FED PIVOT, get this in your DUMB heads. Fighting the FED is for Losers and Idiots.

Amongst all your histrionics, you do get some things right. Artificially low interests rates are GONE, and we will not see them again in our lifetimes. However, as much higher rates will push down demand, they will also artificially reduce the number of people selling. No one is going to sell their house and upgrade to a more expensive one, if they have to exchange their 3% mortgage for a 7% mortgage.

However, it also could be that these higher rates will divert big investment money from REITs back to regular bonds. The diversion of that R/E money could put some downward pressure on land prices generally, even if it's mostly commercial real estate that gets hammered.

But, no, this isn't 2008 all over again.

[1AngryTaxPayer]

Originally Posted by NORTY FLATZ

There's "Mr. Bubble!"

"Their" pronouns are Wyatt and Zirp... sir.

[Carpenter858]

Originally Posted by 1angrytaxpayer

"their" pronouns are wyatt and zirp... Sir.

G/O. Game over

[stablegenius]

Originally Posted by 1AngryTaxPayer

"Their" pronouns are Wyatt and Zirp... sir.

[joosoon]

Originally Posted by NYSD1995

My good buddy who is a young buck just sold his condo (rented out) and made a whopper profit.

But those capital gains. I see more value in the rental but obviously I don't know your friend's situation. Inventory in my zip is 50/50 sfh to condos. It seems weird to see so many of the latter in the mix all the sudden but maybe I've just never paid enough attention. One's a foreclosure according to zillow.

[NYSD1995]

Originally Posted by joosoon

But those capital gains. I see more value in the rental but obviously I don't know your friend's situation. Inventory in my zip is 50/50 sfh to condos. It seems weird to see so many of the latter in the mix all the sudden but maybe I've just never paid enough attention. One's a foreclosure according to zillow.

Young guy, 2 high incomes, kept the started condo when they moved into a nicer one, now wants to move into an SFH soon as is starting a family. Smart kid. Drives a 10 year old car too.

[joosoon]

Originally Posted by kettlepot

But, no, this isn't 2008 all over again.

Yep. Not even close. Unemployment is nothing and people are still spending money.

[joosoon]

Originally Posted by NYSD1995

Young guy, 2 high incomes, kept the started condo when they moved into a nicer one, now wants to move into an SFH soon as is starting a family. Smart kid. Drives a 10 year old car too.

Ah. Makes sense.
Young relatives out of state sold one house they were renting, trying to keep another and a condo, and move back to SD. Seems really daunting to me but their situation is financially similar to your buddy. The market doesn't seem to scare off the younger crowd at all.

[Frac]

Originally Posted by joosoon

Yep. Not even close. Unemployment is nothing and people are still spending money.

Unemployment is always last to turn. The way unemployment is counted is a joke. People fall off the count and make it look lower than it actually is. Also, it doesn't account for workers' hours being cut.