Housing Bubble? Hard Finding Deals? What's Your Market Like?
Hello All,
This is my first discussion. I would like to reach out to investors/Realtors all over to see what they are experiencing in your market and your thoughts on where the market is heading. I have a fascination with how fast real estate markets change and would like to use the Bigger Pockets community as a gauge to see if we can predict or at least be on top of market trends. I will start with my current thoughts. As a Realtor, my market in Southeast Wisconsin seems to be, to no surprise, strong. We have several locations that I would consider to be "listing deserts" which draws in multiple offers and seemingly fast price appreciation. I don't fully understand why we do not have more lower priced listings available or coming up on the market. I would think with strong markets people would be considering that upgrade house which would free up their smaller more affordable home. From an investor point of view I am finding it very hard to get deals. My go to auctions are being bid up or are being sold with squatters in them. I am doing some direct marketing but not having a lot of success and of course the MLS is too competitive to work. I have increased my 70% rule to more like 80% but still find it difficult to get deals. To you more experienced investors, is this the kind of market where you step on the gas and spend more on marketing or do you sit back and wait for the market to slow down? I am seeing some signs in the market reminiscent of the 2005 06 days. We have a legitimate subprime auto loan bubble, wall street has securitized cell phone bills and rent payments, the stock market seems to have no place to go but down, incomes are not keeping up with home prices, Canada and Australia are facing housing downturns, foreign investors are bidding up high end homes, private commercial lenders seem to be spending big bucks on finding new customers and HGTV flip shows and investors are all over the place.... My prediction.... 2017 a great year but current market conditions are not sustainable for much longer then that unless rates go up and more inventory comes on the market,,,,, and at this point I do not feel we are on the edge of another great recession rather a correction. So there is my opinion, not saying I am right, just my thoughts. What are yours?