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Yet, we are still doing 1.4 million in US housing starts and permits. Even with 7% mortgage rates. Which will probably reach 7 1/2 to 8% by the end of the year. Then they will stay there most likely for a year or more unless inflation comes down.

This gives the average current home owner very little incentive to switch houses unless they are forced. The only thing that could change that dynamic is an increase in unemployment. HOWEVER, roughly 1/3 on recent home purchases were for 100% CASH offers. So, 1/3 of home purchases are people that do not care about mortgage rates because they are not taking out a loan.

Lastly, the multifamily type home purchases are being sold with ten or more offers in many cases. I personally tried to buy a three family house here in southern NH just recently. It had a three bedroom, two bedroom and one bedroom apartment in a hundred year old house. They were asking $525K. They had over ten offers at or more than their asking price. The highest was $595 all cash.

The complete real estate industry is under attack, individuals, corporations , brokers, realtors, mortgage brokers, lenders, bankers, insurance companies-who are also lenders and real estate investors, builders, investors,,,, who did I miss?

There’s going to be a massive wipeout.

Locally, you have to beat the Realty company to buy property. An old very large piece of property never made it to market. The day the owner contacted the realty company a Realtor bought it. Had it come to market we would have bid on it because it joins our lot. We never even knew it was for sale. He has bought several properties as have other realty companies. He does live on the property and spent a lot to refurbish the house. The lot had two houses, one a small quest house which he now rents as an AbnB. It is always rented so he is getting his money back. Despite a boom in building there are no homes available and few rentals. Realty companies bought two old hotels and have started converted them into apartments.

The problem is they have driven the property values through the roof. My property value shot up so taxes went up with the value of the property. County is making a killing until reality sets in. My house was never worth more than what I paid for it and I believe I paid $10k too much in 2006 right before the last bust. That was another period where it was a sellers market. Right now if I were leaving the area I could sell my property for a $100k profit. But we would have to move out of the area because there is nothing available here. Recently a quarter acre lot, with an uninhabitable dilapidated double wide, over grown with shrubs and weeds sold for $60k, and that was considered a bargain.