05-19-2024, 08:39 PM
This is the 4th bubble that I have observed here over the last 40+ years. There have been various factors, but one thing has been consistent with all of them: as the prices start to climb, more and more developers and speculators jump on the bandwagon and start building houses and selling them. The ones who get in early make out very well as long as they know when to stop. The ones who get in late or keep going thinking the heyday will last forever end up scrambling.
What we are seeing now is not a buyers’ or sellers’ market. It’s a non-market. Builders are scrambling to get their houses finished and on the market before it’s too late, but it’s already too late. Prospective buyers are seeing the prices go down and will wait until it levels off and at that point they will have many choices of foreclosures and houses priced below what it cost to build them. We are still a long way from that, the crash is just beginning.
What we are seeing now is not a buyers’ or sellers’ market. It’s a non-market. Builders are scrambling to get their houses finished and on the market before it’s too late, but it’s already too late. Prospective buyers are seeing the prices go down and will wait until it levels off and at that point they will have many choices of foreclosures and houses priced below what it cost to build them. We are still a long way from that, the crash is just beginning.