Housing Market Slowdown

[Descant]

Originally Posted by Biggd

I think we are seeing investors pulling back from the market. They have been jumping into market over the past few years because of high rental rates and quick price appreciation.
Now that it's slowing down, it should get back to a more normal market. Unfortunately, that means future prices will reflect this correction.

I agree about investors. I was ready to buy vacation/investments a couple of years ago and backed off. Now I see those places for sale witrh price drops. Many buyers thought they were buying a second home and they would pay for it with short term rental income. They didn't think of themselves as investors and probably many were too eager to buy. Now, or soon, real investores will be buyhing the dip. Making a down payment with a HELOC adds to the problem whem it means the second home/investment may be close to a 90% loan instead of the 70%+ that is common for invewstment real estate.

[Biggd]

Originally Posted by Descant

I agree about investors. I was ready to buy vacation/investments a couple of years ago and backed off. Now I see those places for sale witrh price drops. Many buyers thought they were buying a second home and they would pay for it with short term rental income. They didn't think of themselves as investors and probably many were too eager to buy. Now, or soon, real investores will be buyhing the dip. Making a down payment with a HELOC adds to the problem whem it means the second home/investment may be close to a 90% loan instead of the 70%+ that is common for invewstment real estate.

Many of the prime properties were bought by groups of investors with cash hoping to get the rental income and price appreciation. I know many of my son's friends bought into these real estate investment groups. We'll see how this all shakes out if prices drop and rentals slow down.
My son almost bought into one of these and I steered him away from them.
I took advice given to me by a smart uncle long ago and passed it on to him, "partners are for dancing"!

[FlyingScot]

Originally Posted by Biggd

Many of the prime properties were bought by groups of investors with cash hoping to get the rental income and price appreciation. I know many of my son's friends bought into these real estate investment groups. We'll see how this all shakes out if prices drop and rentals slow down.
My son almost bought into one of these and I steered him away from them.
I took advice given to me by a smart uncle long ago and passed it on to him, "partners are for dancing"!

There's a definite spectrum across the amount of time people will be renting a recently purchased place from 100% to 0%. The closer a buyer is to 100%, the more sensitive they are to market conditions.

My earlier posts were all around people with 0% rental time, and I think this group is growing as the lake becomes more expensive in general. Of course, I don't really know. We can see that fewer places are for sale than there were 10 years ago. But I wonder how the number of rental opportunities had changed?

[sky's]

Originally Posted by Biggd

Many of the prime properties were bought by groups of investors with cash hoping to get the rental income and price appreciation. I know many of my son's friends bought into these real estate investment groups. We'll see how this all shakes out if prices drop and rentals slow down.
My son almost bought into one of these and I steered him away from them.
I took advice given to me by a smart uncle long ago and passed it on to him, "partners are for dancing"!

very well said.

[Major]

As Dave Ramsey says "The only ship that won't sail is a partnership." Having been in a partnership for nearly 20 years, I can attest to this.