30-year mortgage rates are near 8% with excellent credit. Interest rates have climbed for the past three months straight. The Fed is considering another interest rate increase for November and December, possibly pushing rates up to 8.5% or even 9%. The reasoning is that higher interest rates will "slow down inflation".
Home sales are at a 13-year low. Factor in the higher cost of insurance and the fact that property taxes are going up to unaffordable levels and the very high cost of labor and materials for home construction... and you have a real estate market that's going to crater.
I personally know several homeowners that had their homes listed for sale, but have removed them from the market in the past 2 months. They will wait and hold on to what they have for now. One real estate agent mentioned to a couple that they should keep their house off the market until at least middle of next year and then decide based on market conditions.
I'm suggesting that the U.S. economy is a three legged stool... and one of those legs is housing and private & commercial real estate. If it fails, the economy goes into a deep recession at best.
I strongly believe that all of this is a result of these huge companies buying up nearly all of the houses in order to turn them into rental properties. The average person cannot afford to buy anymore.
I personally witnessed it in my old neighborhood, after living there for just 2 years, we were at 75% rentals according to the HOA board.
There is a neighborhood close to me that is a “build to rent” neighborhood. The company bought the entire plot, built the neighborhood, and it’s 100% rentals.
You can trace these big companies all the way back to our usual villains. It’s strategic.
Own nothing and he happy right?