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Residential real estate price drivers
Posted on 5/25/21 at 6:09 pm
Posted on 5/25/21 at 6:09 pm
Seems low inventory, cheap money, high cost of materials, and COVID are really driving up the costs of residential real estate. Now that WFH is looking to be more mainstream and permanent for many, these homes are also becoming places of business. I would assume some of the commercial real estate capital is also moving to residential as well.
But realistically how much higher can it go? At some point there will hit a point where even the average joe levered to the gills can't afford to buy a home. It feels like a bubble, but not exactly the same as in 2008. Any reason to believe things might cool off in the near future for those of us hoping to own at some point? Or will we have to wait for the boomers to die off?
But realistically how much higher can it go? At some point there will hit a point where even the average joe levered to the gills can't afford to buy a home. It feels like a bubble, but not exactly the same as in 2008. Any reason to believe things might cool off in the near future for those of us hoping to own at some point? Or will we have to wait for the boomers to die off?
6
Posted on 5/25/21 at 6:42 pm to garvatron
I don't think it's a bubble necessarily. More like a lot of people are going to be overextended when rates go back up and moratoriums are lifted
Posted on 5/25/21 at 7:52 pm to garvatron
quote:
I would assume some of the commercial real estate capital is also moving to residential as well.
Single Family Rental has been a hot asset class for years. I believe Blackstone started the trend.
Posted on 5/25/21 at 8:44 pm to garvatron
there would be a lot less housing speculation if savings yielded more than zero.
people store value in real estate and the money is not going to be fixed anytime soon or ever so real estate will continue to be where people park their money
people store value in real estate and the money is not going to be fixed anytime soon or ever so real estate will continue to be where people park their money
Posted on 5/25/21 at 8:46 pm to garvatron
Either the fed govt will act to keeps rates low or 40-50 year mortgages will become commonplace. Either way, the "what-is-my-monthly-note" thinking continues and prices rise.
Posted on 5/25/21 at 10:21 pm to garvatron
quote:
Now that WFH is looking to be more mainstream and permanent
But is it? Jury is still out on this one.
I’ve read so many “experts” conflicting predictions about this. It’s exhausting.
Some are saying a more hybrid model of wfh and office time and some are saying offices will be back 100% in due time.
Don’t know what to believe anymore
Posted on 5/26/21 at 5:47 am to garvatron
I saw a commentary on this yesterday who has been correct a lot of the time- What is occurring today is not a bubble and this is natural real estate growth. However, if this occurs for 2-3 year at the rate, yes, we will be in trouble. People can wait or use this increase equity/low rates and pay off credit card debt.
Posted on 5/26/21 at 9:16 am to TMFBB21
it can't be close to a bubble. there's not enough supply.
a bubble would imply: too much supply, weak demand
the supply side issues will take years to resolve but stout prob knows more about that
a bubble would imply: too much supply, weak demand
the supply side issues will take years to resolve but stout prob knows more about that
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