Quote:
Originally Posted by ASAP
I say this and understand that this is heavily influenced by the area you are in... but recall, I am in FL (aka what was the hottest market a few months ago). Not sure what everyone is seeing their markets... but the market will be in for a rude awakening very very soon.
|
Hard to argue with that. At this point even the middle-class consumer has been crushed, and (as I demonstrated in the stock mkt tips thread) they have now run out of their Covid cash. Auto loan and credit card delinquencies are rising rapidly. Rates are so high that the home builders can't eat enough of the costs to lower their prices further, so (as you observed) their homes sit empty.
The $4T that the Dems printed while they controlled both sides of congress will, to an extent, keep the economy from completely crashing. The unions will keep inflation higher than the Fed wants, though, so rates aren't going to come down any time soon. Once the layoffs start, and they will, home prices will drop as sellers who are forced to move face a lack of demand at 2021-2 prices.
If you don't believe me, it's even happening here in coastal CA. Two homes on the most desirable (read, stable) cliff in Capitola haven't sold, even though they've been on the market more than a minute. Of course, they're $10 and $15 million, but that shouldn't stop anybody.
Here's one
4410 Opal Cliff Dr, Santa Cruz, CA.