They're starting new ones around us. Despite tons of existing and finished unsold new homes. I can't believe the banks are willing to finance new construction, but apparently they are.
Where I live, lots of building is going on to keep the illegal immigrants from Mexico and South America working. They are building new neighborhoods in all price ranges while housing sales are at record lows.
I was dramatizing quite a bit. I have seen real estate cycles before, they are so ultra-dependent on interest rates and easy loans. I'm just trying to make it clear to the younger people... the thing is that many move-up buyers need to sell their existing homes to first-time buyers, with the easy credit gone the supply of first time buyers is dried up and the whole process stalls while prices fall, really they probably will fall until first time buyers are abundant again and that won't happen until we have a recession and we forget all the lessons we learned from this bubble [we always seem to] and the Fed stimulates things by lowering rates and lenders ease loan requirements.....
I love how the idiots in my town always talk about how it won't hit here that bad. The real estate bubble was one of the biggest bubbles ever! It's going to hit everywhere
The real estate bust in the late 80's early 90s took over 10 years to wind itself out REITs in the 90's were worth pennies on the dollar then we had this massive updraft who the hell knows if we will retrace to the early 90's lows high on the probability list though: buy at the beach while the feds will still share your risk theres only so much sand left to build on
This is the thing that I really love. Wait just wait until the fed has to aggressively raise interest rates to cut inflation. It's going to eventually have to happen. With oil at $110 a barrel I don't know how our country still functions. I work in sales and call on major manufacturers all day long. I call on trucking companies as well. A lot of them are going under because of gas prices. Most are shutting down. If oil hits $130 a barrel our whole country will shut down. And the stupid ass fed wants to lower rates..... Do you how important oil is and how many manufacturers are impacted by it. Plastic is made from oil....every product that contains plastic is affected....cars, computers....everything. Do you know how many products are a derivative of oil....everything....it's in just about f**king everything. I know people will say when our economy cools everything will come down. But with our dollar tanking and other currencies strengthing....I think the fed will still have to raise rates drastically. Wait until all of these stupid lost sheep see a 10% mortgage rate or better a 15% mortgage. Tell me what happens to real estate then. Say goodnight....
We've seen it before Volcker did it in the 80's It hurt for a while --- but then the country saw economic growth for years thereafter and by the way - if you owned a house when inflation was at 8% 9% you saw your house appreciate at 11-12% each of those years
Pricing will come down all the more. If you see a mortgage rate at 15% how much more will real estate come down.....who's going to be able to afford anything. The median price for a home in the northeast is 265k or at least it was. What's a mortgage at 15% on 265k....forget about it nobody can afford that.