Housing Market Crash

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Housing Market Crash

Nicolas Ake
Real Estate Agent · Akron · Member since 2019 · 35 posts · 11 votes

Hello!

If the house market crashed/corrected in the middle of my first BRRRR would I just have to eat the equity loss and surrender hope for a successful appraisal/refinance? The next move would be renting that one out and looking to buy others as their price dropped, right? Am I over estimating how fast values would drop?

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Russell BrazilBusiness Member
Moderator
Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
7y

Yes, however there was roughly 88 years in between the last 2 housing crashes. So we might have a ways to go til the next one. (or not, could also happen tomorrow)

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  • Jim Goebel
    Real Estate Investor · Des Moines, IA · Member since 2016 · 922 posts · 533 votes
    7y

    @Nicolas Ake

    Yeah, I don't think this happens overnight.  We'll see signs and more and more people will start to get worried but it doesn't happen within a month's time or even 3-5 months time (as in, suddenly everyone just capitulates, and the supply/demand dynamics suddenly change).  If you didn't get yourself into a project that is going to take yourself a year to finish, I wouldn't stress it.

    Plus, it's out of your control and it's best to just focus on what's under our control.

    1Reply
  • Greg Dickerson
    Developer · Charlottesville, VA · Member since 2018 · 4k+ posts · 4k+ votes
    7y

    Keep an eye on interest rates and inventory levels. The easiest way to spot a downturn is rising inventory and days in market increasing on listings. 

    As long as interest rates remain low we will be in good shape. If they start shooting up keep an eye on the market as you will see it slow down.

    As long as you buy cashflow and do not overpay you will be able to weather the downtown when it comes.

    2Reply
  • Russell BrazilBusiness Member
    Moderator
    Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
    7y

    Yes, however there was roughly 88 years in between the last 2 housing crashes. So we might have a ways to go til the next one. (or not, could also happen tomorrow)

    [email protected]301-893-4635Podcast Guest on Show #192
    District Invest Group546 Reviews
    WebsiteView Page
    3Reply
  • Nicolas Ake
    OP
    Real Estate Agent · Akron · Member since 2019 · 35 posts · 11 votes
    7y

    Awesome advice guys! Makes sense. Thank you.

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  • Caleb Heimsoth
    Rental Property Investor · Durham, NC · Member since 2016 · 7k+ posts · 7k+ votes
    7y

    @Russell Brazil the recession is happening tomorrow?? I better sell immediately today

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