Forecast of RE market? Thoughts?
I'd be very interested in everyone's thoughts on where the RE market is heading in the next 10 years, primarily in current hot markets.
The SF Bay Area, as well as others, have shown a dramatic increase in both market value and rents in the last 5 years (2x?). With interest rates forecast to raise slowly in the next 10 years & the government GPD forecast to not hit 3% for 10 years I don't think wages are going to be climbing very fast. If this is the case then in areas such as the Bay Area I think SFR rents should probably plateau. Likewise I think SFR market values will plateau.
I think in the long run, since the job growth is still okay in this area I think both rents & MV won't decline but also will not be seeing the record increases of the last 5 years.
Does this scenario seem plausible?
Given the current high values of the area I would then think it is better to hold onto property and bring the rents up to market rather than take on debt to buy additional property.
Thoughts?
Thanks all !