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Cant imagine real estate not taking a hit when yields go up...
by adflux 5y ago
Cant imagine real estate not taking a hit when yields go up...
- alexanderthe- 5y agoI'm not complaining (I haven't bought a house yet).
- downrightmike 5y agoAll that free money drying up
- mvkel 5y agoInventory is so low, it's extremely difficult to buy even if you wanted to
- dominotw 5y agoinventory is building back up at a rapid pace. I see lots of construction everywhere.
- jiveturkey42 5y agoI imagine there is a huge backlog after the lumber price spike in 2020 has trickled back down
- mvkel 5y agoIt depends on the area, of course, but most of the construction you're seeing is likely already purchased; developments sell well before the shovel hits the ground these days.
- adflux 5y agoRoughly, for every extra percentage of interest, your maximum mortage becomes 15% lower.
- beamatronic 5y agoBut the demand is still there. And many buyers powered by stock market returns.
- ninkendo 5y agoBuyers' cost tolerance is driven by the cost of their mortgage, which is extremely sensitive to interest rate hikes, which typically rise as a way to curb inflation. No cheap mortgages means a lot fewer eligible buyers.
- deleted 5y ago[deleted]
- iknowSFR 5y agoDepends on who is already financed. Likely this will be a lagging indicator and we’ll see further increases in institutional investment. Government at all levels will avoid being involved because citizens have grown used to the liquidity of their homes. The long term consequence to the retail market is going to be a tough pill to swallow. Builders adding to inventory are partnering with institutions already. All of this plays out in favor of expanding the SFR market share.