Pending home sales fall for fourth straight month
(finance.yahoo.com)
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It ain't slowed at all in my neighborhood. Places that list at 550,000 are being sold for 680,000 by the time the bidding gets done.
the BOOM on this one will be much louder....back then we did not have inflation at a 40 year high and we did not have supply chain issues and shortages...hang on cause its gonna be rough!!!!!
I'm still holding onto a property (a rental now) that I lost on bigly in '08. However, we just sold our home in eastern WA and moving to back to small town MT (YAY!). Just trying to decide now if we buy or rent...I'm thinking rent till the BOOM then use the money we just got selling to buy something outright. Land it also an option; cash for land and cash for a fifth wheel and at least get us through fall this year and then decide.
Honestly, I don't really get where this stereotype of all people moving to the countryside is coming from. I mean, yeah a lot of rural suburbs are growing, but that's the point. They're rural suburbs. Most peple still aren't moving to the middle of nowhere or small towns because they still want the convenience of city life without the city problems. And even then, Cities are still growing too, just not as fast.
Now having said that, this isn't going to be a repeat of 07-08. Pretty much everything is different here. The main underlying cause of 07-08 involved subprime mortgages, which are essentially impossible to get post great recession. This is entirely different. This has nothing to do with people being underwater on their mortgages. Rather, this is about the entire global economic stystem collapsing in on itself. This is just one of many signs it's about to happen. People aren't able to afford to buy a new house with the price of EVERYTHING on the rise. So it's more reasonable to stay where they are or rent and keep their basic budget higher rather than buy a new house and have a lower basic budget.
Like I said, this is just one thing. You can also look at metal prices, the cost of fertilizer, basic food prices like wheat and grains, etc. etc. This is different from 07-08. I honestly have no idea what will happen. Normally real estate will go up in value when there's fear of an economic downturn since it's considered an uncorrelated "safe" asset. But this time there's so much different from essentially every other example, that it's hard to say what will happen. Prices might go up, they might go down, they may remain stable. There's just too many wild card factors to say for certain this time around.
Pretty much the only thing you can be certain of, is that the Fed and other central banks are on lifesupport, and this is their dying breath before they finally go back down to hell.
Good. We need a contraction.
Nowadays, people ain't got a pot to pee in or a window to throw it out of.
Reminds me of 2008-2009 when the bubble burst. Same multiple offers way above asking price, then BOOM!
:)
It's because there are less homes available to be sold on the market. It would affect the overall pending sales.
The cost of building a new home is ridiculous right now and keeps going up.
It now costs about $250 per square foot in my area (up from roughly $150 per square foot only just over 7 years ago when we built this home) And you're not getting any better quality with those builds than before.
Some builders are also beginning to add lumber as an allowance. Only know this as a neighbor is currently building a home and moving to another area. I assume there is a size base (perhaps 1,600 square feet, but who knows?) and you have to pay over and above that base for the size of your home. That adds even more cost to a home if you are looking to build something double that size.