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What I am worried about is won't building new homes slow down to a crawl or stop completely if the r word is confirmed?

by mcny 11mo ago

jfghi 11mo ago
I think with the amount of corporations and existing homeowners buying homes that the demand is strong enough to keep prices high no matter what happens. There are billions of dollars set aside to gobble up homes in the event of a price drop. In my area, 20 percent of homes are owned by investors and realtors delist homes that don’t sell as opposed to drop price.
- phantasmish 11mo ago
  > In my area, 20 percent of homes are owned by investors and realtors delist homes that don’t sell as opposed to drop price. This has been so weird to see over the last couple dips. In the ‘08 crash, banks were sitting on houses that were developing mold issues because they had been sitting vacant so long. These houses were getting more damaged and less desirable by the day, and before long would require hundreds of thousands of dollars to fix (up from the low-tens already evident) but they still preferred to sit on them. They weren’t listed, or were listed but at too-high prices and they were just ignoring offers, not even responding. Then you look at “depressed” housing prices that are still way over historic norms, so you’d think builders would keep going… but no, they totally halt all work, no new houses until prices are heading up again. Something’s super messed-up about the housing market in ways that it wasn’t in the last millennium. Recessions don’t even fix it, they just make everything pause.
HPsquared 11mo ago
On the other hand, it'll get cheaper to build new houses as material and labour costs should fall. Might be hard to get finance though.
- jandrese 11mo ago
  Labor costs are unlikely to fall. The cost of living has been on an upward trend that shows no sign of stopping. The federal government waging a campaign of terror against the demographic that most house builders employ is certainly not helping either.
jerlam 11mo ago
Already happening around me as the price of construction has been going up, while the value of homes is flat. Empty lots zoned and permitted for apartment and condo complexes lay empty.

What I am worried about is won't building new homes slow down to a crawl or stop completely if the r word is confirmed?

by mcny 11mo ago

What I am worried about is won't building new homes slow down to a crawl or stop completely if the r word is confirmed?

jfghi 11mo ago

I think with the amount of corporations and existing homeowners buying homes that the demand is strong enough to keep prices high no matter what happens. There are billions of dollars set aside to gobble up homes in the event of a price drop. In my area, 20 percent of homes are owned by investors and realtors delist homes that don’t sell as opposed to drop price.

phantasmish 11mo ago
> In my area, 20 percent of homes are owned by investors and realtors delist homes that don’t sell as opposed to drop price. This has been so weird to see over the last couple dips. In the ‘08 crash, banks were sitting on houses that were developing mold issues because they had been sitting vacant so long. These houses were getting more damaged and less desirable by the day, and before long would require hundreds of thousands of dollars to fix (up from the low-tens already evident) but they still preferred to sit on them. They weren’t listed, or were listed but at too-high prices and they were just ignoring offers, not even responding. Then you look at “depressed” housing prices that are still way over historic norms, so you’d think builders would keep going… but no, they totally halt all work, no new houses until prices are heading up again. Something’s super messed-up about the housing market in ways that it wasn’t in the last millennium. Recessions don’t even fix it, they just make everything pause.

HPsquared 11mo ago

On the other hand, it'll get cheaper to build new houses as material and labour costs should fall. Might be hard to get finance though.

jandrese 11mo ago
Labor costs are unlikely to fall. The cost of living has been on an upward trend that shows no sign of stopping. The federal government waging a campaign of terror against the demographic that most house builders employ is certainly not helping either.

jerlam 11mo ago

Already happening around me as the price of construction has been going up, while the value of homes is flat. Empty lots zoned and permitted for apartment and condo complexes lay empty.