How to Make Some Sense of the Housing Market
Things to watch - nothing is normal:
*** Investors / institutional Buyers playing a larger role in driving pricing higher. We have seen this playbook before… look back to ’03-’06.
*** The highest price-points are currently experiencing the fastest Home Price Appreciation - this is opposite of historical norms where the lowest price-points appreciate at the fastest rate
*** Currently there is outright depopulation taking place in Northeast & Midwest, huge declining working age populations, huge decline in employed yet there is rising construction and price appreciation - this is counter to economics 101 - falling quantity of potential buyers/renters + rising quantity of homes equaling rising prices - this isn’t how it’s supposed to work…
unless there is a speculative bubble forming.
*** What if Today’s Buyers who are willing to overpay to secure homes get called back to the home office within the next year? If remote work stops, and it happens all at once - does the great “reshuffle” unwind? Do all these houses go back on-market at once? Do they end up underwater? Doubtful…
but possible.
