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.
That is because people buying new homes want them to be in jogger proof neighborhoods for as long as possible. Old style starter homes were possible in the days of segregation, redlining, realtor discrimination.
nope they do it cuz there is not enough profit in the small home market...
Agree, tat leaves the manufactured and tiny home guys filling the gaping need. Warren buffet got into manufactured home business. There are over 50k mobile home parks in the states. Dense land use, collect only lot rents. Mote millionares than any industry out there. Many parks are very nice, cheap to live in. But it's not land ownership and it sucks. Buy dirt, own it up front.