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When prices reach a point where you can't pay your mortgage by renting out the property then you can pretty much guarantee that prices are on the (too) high sid
by UncleEntity 8y ago
When prices reach a point where you can't pay your mortgage by renting out the property then you can pretty much guarantee that prices are on the (too) high side.
> ...but then sellers got greedy. We're currently in a stalemate where nothing is selling because sellers want unrealistic prices.
Technically...buyers make the market. Without a willing buyer it's all just wistful thinking.
The real question is if the prices are truly unrealistic or are they necessary to ensure the seller isn't losing money on the deal?
- ngngngng 8y agoIt was really interesting to watch. Prices kept going up until spring of 2018 when they crossed the threshold into too high territory. This is where we were kind of in a bubble because there were some willing buyers paying more than they could rent for. There weren't very many buyers that could afford those prices though, Salaries in Utah are historically lower than they would be in similar markets else where. If you're in Utah there's usually good reason to be stuck here. Religion, family, obsession with skiing, etc. So now sellers are wanting the prices that houses sold for in the spring, but there just aren't enough buyers out there that can stomach that. And certainly not enough salaries out there that can stomach that.