Quote:
Originally Posted by chassis
Residential real estate is in the early stages of a multi-year strong period.
Single family homes have been underbuilt from the GFC until the 2018-2019 period. Single family home construction should be strong for several years, at least. Pricing on new construction should be firm. Pricing on existing homes should be firm because many people don't want the hassle or don't want to/can't wait for a home to be built.
When I say pricing should be "firm", I am hedging because I think pricing will see moderate to strong increases.
I don't see the economic climate changing because of an election. The economy was strong before the "events" early this year, is currently strong, and will be strong for the foreseeable future. It's because of population growth, accentuated by low interest rates.
Consumer spending never truly softens, it only increases. This is what drives the economy.
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Respectfully, I disagree. And it has nothing to do with the election. I'm seeing a huge backlog of people in default on their notes in the foreclosure space I mainly work in. We used to see on average 400 units on the county pre-foreclosure list here in Dallas and 50-60 of those would get foreclosed on. Lately, due to moratoriums on foreclosures and people that took forbearance those numbers have been closer to 100/mo with 20 or less getting foreclosed on. Short-term its squeezed investment numbers and margins super tight and just as a whole in the retail market here inventory has been down and multiple-offers on houses are everywhere... BUT, there's at least 3000 units in the queue of backlog if not more based on last year's averages.
When I attended the auction last week, my sources in the lending community were saying they think the actual numbers of people in default once the moratoriums and forbearance end may end up in the 10,000+ unit range. There's already agents I know asking in various local RE groups I'm in what to do because their client's forbearance period is ending and the bank is making them pay-up now or do a loan-modification not putting the owed balance on the end of their loan without penalty like many thought would happen.
I do agree that construction has slowed, but building materials are a mess right now and driving up prices like crazy. It's going to squeeze a lot of buyers out of the affordability pool for those and I think single family pre-owned inventory is going to rise.