When is the housing market going to correct?
Hello all,
I have been sitting on the sidelines the past three years and have regrettably avoided pulling the trigger due to the assumption that prices are wildly inflated and not wanting to buy at the peak. I am in southern Maine and watched my friend buy a home in 2018 at $280k, appraised again last Nov. at $380k, and then re-appraised since he refinanced at 2.59% at $490k. He jokes, all he's one is clean his pool. I am currently not laughing, as I am sitting on $300k cash and wishing I had bout a house. My other friend who lives in Austin bought his home less than a year before COVID and has seen his home jump almost $300k in value. Are these prices here to stay?
- every graph I look at (home medium prices, etc) is clearly on a run, and it seems impossible that can be sustained
- we are now borrowing more than our GPD
- Inflation seems to not be happening (10 year rates dropped 7% recently, and soon may very well go negative)
- the list of indicators goes on and on...
1) What does this mean to you all for the housing market?
2) If prices drop, do you anticipate rates to also spike? Or will they stay near this historic low?
3) Those of you than owned rentals during 2008, how did you fare? Did people loosing their homes seek you out in need of a rental? Or were many of you left with tenants that were unbale to pay their rent?
4) Are the current evictions moratoriums effecting any of you?
5) Do any of you have an anticipated time frame for when you think this housing market will correct?
Thanks all!