I don’t buy this.
There is currently a huge imbalance between supply and demand for real estate.
That is, there are way more people looking to buy houses than there are houses.
This comes as a result of 10 years of underbuilding.
Don't just look at today. Look at the future. With our demographic imbalance we are likely to see a dramatic decline in demand for traditional housing in the U.S. in the future.
This may be one of the biggest reasons why everyone in U.S. government and industry is hell-bent on keeping our borders open. If you buy a home today and you're planning to sell it 15-20 years from now, there's a good chance the only buyers will be an extended family of 15 people from Latin America.
Agree plus lets see just how many if any rate hikes actually happen.
If you mean houses for sale, that is currently true. But as interest rates rise and fewer people qualify for financing in each price range it will eventually correct. Those in the lower income and credit score range will be forced to stay put or to seek low-income housing. The mid-level folks will pay more for less house. The rich will be least affected.
The big difference this time is the lack of demand and the huge oversupply of commercial property. Empty malls, strip malls, office buildings, restaurants, etc brought on by Covid policies will double the impact to the banks and private lenders.
...and importing millions of illegal third world aliens getting free housing is not helping.
“I don’t buy this.
There is currently a huge imbalance between supply and demand for real estate.
That is, there are way more people looking to buy houses than there are houses.
This comes as a result of 10 years of underbuilding.”
Not only that, but the price of building material and labor to build new house is through the roof.
I went to buy a 12ft piece of treated wood yesterday (2x12) it was $53!! I was shocked.