INVENTORY! Where are you?!

[Drew Nashmy]

I apologize in advance if I am beating a dead horse, but . . . . where is the inventory?~! And what are you doing about it? 

In my local market, things have completely dried up on inventory for possible fix and flips. What is available is easily 25-33% HIGHER priced than I am comfortable with. Does this mean that I will reap the benefit of that on the backside as well? Maybe, but there are so many factors that can affect that that are out of my control. 

Went to the courthouse this Monday in search of a property. My team and I had calculated our max bid to be $85k. It slowly inched it way there, and I continued to bid until about $92k. Minutes later, it sold for $122k! 

Are you seeing this problem as well? What are you doing about it? Any ideas on how to be creative? I am actually thinking about purchasing land to do new houses . . .

[Seth Wilcock]

With interest rates where they're at, people are going to stay in their homes longer, which will ultimately continue to add to the inventory shortage and drive values higher.  If someone bought their home years ago, that means they were able to buy before seeing appreciation levels take off.  With interest rates dropping many are taking advantage of refinancing to get a lower payment.  Let's say interest rates go up to the high 3's and low 4's in the next few years.  It will be tough for a homeowner to want to sell their house and move into a higher payment that could easily be double what they are used to.  Sellers will need large enough motivation to want to sell & buy in a higher interest rate environment where homes are more expensive.  I don't see home price appreciation slowing down, especially as more and more millenials enter into the first time home buyer market.  We'll see first time home buyer numbers increase exponentially as millennials start having kids and start looking for homes in good school districts.