Some areas are still red hot but some areas are starting to see signs of the housing market slowing down. This report from Texas A & M Real Estate Center reveals how to know when the frenzy is slowing down,
“Both housing sales growth and housing price growth have peaked and are slowing,” said Dr. Luis Torres. “In addition, months of inventory, listings, and days on market have reached a trough and are beginning to rise.”
In my opinion…this market is not done by a long shot. There are so many Wall Street funds out there still snapping up inventory left and right like it’s nobody’s business. The Fed has injected trillions into economy and there’s no place for these funds to go except into assets like stocks and real estate. There might be some zigs and zags along the way but SFR has caught the eye of these hedge funds and they’re piling all into the space. Even should there be a “black swan” event again, Wall Street is not going anywhere from the big markets and slowly but surely will be expanding into all of them.
I had a conversation with my realtor friend, and he says because of the housing slowdown back in 2008 when everything collapsed, the market is 10 years behind on construction, which means there’s a shortage which he believes won’t go away soon. I live in Florida and also lived in Charleston SC and the scarcity is tangible. It’s been a seller’s market for years. It might level off a little but I just sold my house and got multiple offers immediately.
On the other hand, after watching “The Big Short” and realizing that the banks went right back to doing tranches immediately after the collapse and none of them went to jail, it means we should be due for another ‘correction.’
I’m not sure what happens when you have these two opposing forces like this. I went ahead and sold just to be safe, and I’m going to rent and see if the market collapses so I can get some deals.