Will the house market crash soon?

Question

I own a commercial property that’s rented out and also have a town home I live in I want to rent the townhome out and buy a single family home prices in Minnesota are high if I buy a house for 450 put 20% down is there any way the house can crash and go down to like 300k in the next 5 years it’s a brand new home FYI....

Jim K. · Answer

This is the sort of thing a Magic 8-Ball is better at answering than the Bigger Pockets forums.

Kevin Martin · Answer

Who cares if it goes up or down...just don’t lose your day job! Cash flow is all that matters....

Armin Nazarinia · Answer

@Nikolay Afanas- I agree with most here. That big of a dip is unlikely, however does that make sense for your real estate investing? What are your goals, are you good where you're at? Is this property going to drain you at all to the point you can't continue to grow(if that is your goal). It's totally up to you but if the market/property did crash lets say $50K how would that impact you? I don't think you would need to worry about it going down that significantly for a new build just something to think about.

Jay Hinrichs · Answer

NOPE

Amber Gonion · Answer

@Nikolay Afanas it is very unlikely,  the underlying signs are not there.  There are actually very good signs as far as delinquency are concerned, but with that said home sales have been slowing slightly.   It really depends on the market, class and type of home.

Here in the twin cities I would expect a light retraction of prices in the luxury home market.  The rest of the market has higher demand than product supply currently.

Ashraf Spahi · Answer

How long will you be living in the single-family home? If you are able to cover your mortgage and expenses and plan on living there for 5+ years then even if the market does crash it will eventually come back up. As long as you don't sell during the crash you should be fine No one knows what can happen though, people have been crying market crash for the last 3 years.

Russell Brazil · Answer

A year later, prices at all time highs

Jonathan W. · Answer

@Nikolay Afanas plenty of people think so but that’s just locker room gossip.

If they say a recession is to happen every decade and I believe we had the Internet stock bubble crash in 2000, a small recession in 2002 and a crash in 08. Well that’s 3 within a decade....looks like we have a long road ahead of us until the next!

Oh and it helps when the president and his whole family are literate/educated in economics

Caleb Heimsoth · Answer

@Nikolay Afanas I for see a market crash within 25 years.  So best to sell everything and not do anything until then.  Preferably sell for a 50 percent discount to me.

Will Zena · Answer

Even if the market were to crash the odds of a $450k home that is brand new in an A class area dropping to $300k is an extremely long shot. Go to plan B

Will the house market crash soon?

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