6 years from now, you won’t be able to give away lumber. The housing bubble will be over, the builders will have overdeveloped AGAIN, and inventory will be too large AGAIN.
I don’t believe we will go through another foreclosure crisis like 2009/10 when everybody’s adjustable loans reset 5 points higher, but I think there are going to be a fair amount of forclosures coming onto the market after the banking moratoria end on mortgages. Remember, those temporarily stopped mortgage payments are being added to the back end, so those loans are quickly getting larger. Most will pay but some will walk away and go into foreclosure.
The point is, the overdevelopment combined with some foreclosures will lead to a new buyers market.
I guessed 6 years, but who knows the timing? I wouldn’t buy a house today for all the tea in China. I would wait until homes are not moving and market inventory soars.
All good things come to those who wait.
china will buy up those homes when they are foreclosed.