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House price fluctuation is still local market dependent. People who purchased overpriced, new mass developer homes in saturated newer markets may suffer a contr
by tyjen 4y ago
House price fluctuation is still local market dependent. People who purchased overpriced, new mass developer homes in saturated newer markets may suffer a contraction. Areas with supporting high demand, low inventory, and inability to develop newer properties will maintain increasing valuation, but not at the same rate. A savvy home flipper can still make money, it's just harder to do so with increased competition in that area.
This isn't a repeat of the 2008 financial crisis, in which financial institutions overloaded on mortgage-backed securities fueled by easy access mortgage loans without thorough loan application vetting. The deluge of foreclosures isn't likely to occur and people are likely to hold onto their houses and maintain firmer home prices during this slowdown.
- Kon-Peki 4y ago> Areas with supporting high demand, But most people think that this is an accurate description of their local market, and I'm not so sure that it is.
- tyjen 4y agoMost people don't know how to evaluate a market and are more short-sighted than they want to admit to themselves. It's reflected within entrepreneurship too, with ~50 percent failure within 5 years. Seattle: Severely limited land area mass surrounded by water with robust business sector. Single-family homes will become rarer across time with local pushes to develop multi-family domiciles. And, if you buy waterfront, your security increases substantially. Colorado Springs: Mountains impede development slightly with large military presence, but you can build suburban developments for as far as the eye can see in most directions. Prior to a slowdown, people see prices increasing and apply it too strongly to future results. But, one of these areas will be far more insulated from price fluctuations than the other.