Home values in tons of areas have literally 2X’ed, sometimes even 3X’ed since the pandemic hit. And when you throw in today’s interest rates, you’re basically looking at triple the total cost over the life of the loan. It’s absolutely nuts.
What’s driving this craziness, and if properties are just sitting there not selling, why aren’t sellers getting realistic about their asking prices?
Prices are starting to drop in some markets that were red-hot before, like around Austin, but it’s happening slowly. A lot of sellers just aren’t desperate enough to move yet, so they’re holding firm on price. I’ve seen plenty of people list their investment properties, pull them when they don’t get bites, then try again later at the same price.
The sellers who really need to move are the ones making big cuts, sometimes 10% all at once. Those places tend to go pretty fast once the owner gets real about what the market will actually pay.
Not sure how much geographic flexibility you have, but I know some markets are still pretty affordable. Alabama, Mississippi, and parts of Ohio, Indiana and Michigan come to mind.
I hear you, though. The housing price situation is hard. I feel bad for young people in their 20’s, trying to get their first house and establish themselves. The prices of even the worst houses in my city are absurd right now. I’m not even in a coastal, expensive market, and most normal people are simply priced out of the market.
I’m surprised there aren’t more mobile home parks popping up in more places. They may not be the #1 of housing everyone wants, but at least they’re more affordable.
You are probably on to something regarding the mobile homes. I listened to Neil Clements podcast about how mobile home flips have been very lucrative for him and it makes a lot of sense given todays housing prices.
I love his podcast but it’s so hard not to get shiny object syndrome when listening to him. lol