Quote:
Originally Posted by Vegas69
I'm starting to see many similarities locally that I saw just over a decade ago. While I don't see the indicators there for the same type of meltdown, I do know that things cycle and I think Spring is over and we are well into Summer, maybe even approaching Fall in the cycle.
Housing is up over 40% in less than 4 years
People are spending, spending, spending on non essentials.
The construction industry is BOOMING driving construction costs up substantially. I met with a local architect that is a real player. He said it's curtailing the commercial segment.
Low to no down payment programs are back for housing
Sloppy and new professionals are coming back into my industry
A recent Inman poll showed a majority of Americans are moderately optimistic to optimistic about the real estate market. That's a stark contrast from a short time ago.
I have a listing appointment tomorrow where the value is ABOVE the price they paid in 2005!
We are coming up on 5 years into our housing recovery. The median price of a home has stayed stagnant for 9 months with a shortage of inventory. The stock market is up there...look at its growth in the same period.
I do feel the foundation is much stronger this time around. I just think the next cycle is coming on in 1-3 years. I want to be cash heavy and debt free this time around.
What's your local economy or industry feel like?
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Agree with most of your analysis here. I've been looking for add'l rental properties since I bought my last one in late 2014 but the bidding and pricing is just insane in the areas I want. But with the low fixed rates, and skyrocketing local rental rates, I am still looking for something "acceptable" to me in terms of my own analysis and requirements -- neighborhood (path of progress), tenant situation (vacant vs occupied), etc -- as my target area is about the most anti-landlord you can find. But I welcome that as it keeps most of the scaredy cats away or those unwilling to deal with that.
I know I could sell my 4 plex I bought 18 months ago for $200-300k more, but I have an incredible 30 year fixed rate so will hold it. I mean, what would I buy with the proceeds anyway?