Told my wife if someone is looking to buy a house they better do it soon..
I would argue if someone wants to sell a house, they better do it soon. Time will tell I guess.
Interesting and I don't disagree. But a curious thing is happening and I know exactly why. My locale NW Montana house prices have gone crazy and inventory is non existent
It's an interesting equation to watch and see how it plays out. I remember in 2007 everyone in my area was telling me "if you don't buy now, you will never be able to afford a home because it's only going higher." Something didn't sit right with me after years of going vertical, it felt like buying the top. I waited and sure enough in 2011, I bought a house that had dropped in price by about 35% from those 2007 levels. Of course, there's nothing that says the same thing has to happen again but it just feels the same to me.
The dropping interest rates over many years and the current bloated money supply is forcing the markets higher. The lower interest rates have allowed sellers to continue to drive prices higher because lower rates offset these price increases on a monthly payment basis. As soon as rates stop dropping or start heading higher, that seller price leverage will be gone and monthly buyer outlays will rise, even if prices stay stagnant. In other words, it will be harder and harder to raise prices within the affordability limits of the potential buyer pool.
Lastly, the Fed has been pumping a lot of liquidity into the system. They're gonna want it back at some point. When that happens, it'll put a lid on nearly every market. Question is when does that happen? Who knows, maybe years from now and I'm crying wolf. Like I said, time will tell. All I know for certain is that I have an excellent job, very low expenses and there's no way I can afford a decent home in my area. I probably make more than 60-70% of the people here.
