Posted on 01/20/2022 7:52:57 AM PST by Browns Ultra Fan
MANY business is up and down in greater extremes for the same reason. A lot of times buyers are dismissed if they elect to slow the process down for an inspection
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Trying to figure out when to cash out. I like my property but it is very tempting.
Thank you. Yours is an interesting observation.
There is a huge amount of cash sloshing around, mostl on the sidelines. I know personally real estate investors who are waiting for the market to cool down, but their supply of cash as they start to buy will keep the market hot for some time.
I bought a house in Sarasota last month. It was the sixth house on which we made an offer. We put down 20%, and we have an excellent credit rating. But the first five houses on which we offered were snatched by all-cash buyers.
Inventory will be aided by evictions, as scamdemic eviction moratoria slowly become a thing of the past. But that will happen over a period of two years or more, so it will be a trickle. If the Fed has any backbone, rates will rise and mortgage rates will be 4% - 4.5+% in a year. That will suppress demand and put some downward pressure on price increases.
But until the excess cash in the economy is largely soaked up, I don’t see demand meeting supply any time before that. It could take another ear or so.
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