Thread: Looks like this housing market boom is about to end

Yep. The eviction moratorium will throw a ton of inventory on the market. Extended unemployment benefits will end in the fall and the economy will be booming so interest rates will rise along with inflation.

I'd say next spring we'll start to see housing prices retract some and from there we'll be back to normal growth. However, if folks can't get caught up on their mortgages and start getting tossed left and right we could see some short term significant price pull back.

Ready to keep buying

Originally Posted by BigDeeps01

Ready to keep buying

Hope you haven't been buying the last six months. Chit is insane and unstainable.

Originally Posted by SillieBazzillie

Hope you haven't been buying the last six months. Chit is insane and unstainable.

I've bought 2 in the last six months

When I have a fixed PITI of $1400 and can rent the house for $2k or more, why would I be worried?

You guys don't really understand how this works lol

Originally Posted by SillieBazzillie

Hope you haven't been buying the last six months. Chit is insane and unstainable.

You give so much bad advice.


Yeah lets not buy rental units when a bunch of mc mcansion owners are about to lose there house and become life long renters. Retnal properties surge during economic downturns.

Originally Posted by BigDeeps01

I've bought 2 in the last six months

When I have a fixed PITI of $1400 and can rent the house for $2k or more, why would I be worried?

You guys don't really understand how this works lol

Um, when rents fall because of excess demand and your mortgage payment doesn't?

But hey, things never change and no one has ever got phuked buying at the top of the market.

But I do mire boyos who have continuous passive income. Wish I'd had that foresight myself when I was young.

Originally Posted by swoleyo

You give so much bad advice.


Yeah lets not buy rental units when a bunch of mc mcansion owners are about to lose there house and become life long renters. Rental properties surge during economic downturns.

First of all, I'm only speaking about buying personal and vacation homes. And rents can absolutely go down with a flood of excess inventory. But I am not familiar with that side so I offer no advice.

Originally Posted by SillieBazzillie

Um, when rents fall because of excess demand and your mortgage payment doesn't?

But hey, things never change and no one has ever got phuked buying at the top of the market.

But I do mire boyos who have continuous passive income. Wish I'd had that foresight myself when I was young.

And why would rent fall?

First off, rents are fixed for a lease term, so a lowered rent wouldn't hit me for 6 months to a year. Any sort of correction in my market will not last longer than that.

Secondly, you're assuming there will be such a great flood of rentals into the market that rental rates would go down. In my market, rents have been increasing $100-200 a year. So there would have to be an absolutely massive influx of houses. Even then, I would say it's more than likely I just wouldn't be able to raise rents on the next lease term, or maybe it would go to $1800-1900 at the lowest. There's no way it would go below my PITI, unless there's such a catastrophic failure in the system that rental rates would be the least of my concern

Even if this were to happen, I would just float the rentals. I could float every one of them an extra $500/month if I absolutely had to and I would be fine. I'm not overleveraged

Now, what will actually happen is that there may be a small influx into of supply into the market, the will be a slight correction (not a crash), the people sitting on the sidelines with cash waiting to jump in will pounce on the temporarily lowers prices, and the plateau will be busted through. There will not be this giant crash.

Not to mention, people who lose their houses due to not being able to pay their mortgage still need a place to live, so demand for rentals will actually go up

The only people that get ****ed at the top of the market are guys that don't buy smart (I always buy with equity, or force equity through renovation) and guys that are overleveraged. With rates these low, I'll be absolutely fine

Originally Posted by SillieBazzillie

First of all, I'm only speaking about buying personal and vacation homes. And rents can absolutely go down with a flood of excess inventory. But I am not familiar with that side so I offer no advice.

You don't sound like you have much experience or knowledge in any of this if I'm being honest. I'd stop giving any advice.

Originally Posted by BLOATMOGGER

Where have you been finding these properties? I'd be buying too if I could find rentals like that.

I work in the industry and I also do my own marketing for distressed properties, so I find deals before they hit the open market

Originally Posted by BigDeeps01

And why would rent fall?

First off, rents are fixed for a lease term, so a lowered rent wouldn't hit me for 6 months to a year. Any sort of correction in my market will not last longer than that.

Secondly, you're assuming there will be such a great flood of rentals into the market that rental rates would go down. In my market, rents have been increasing $100-200 a year. So there would have to be an absolutely massive influx of houses. Even then, I would say it's more than likely I just wouldn't be able to raise rents on the next lease term, or maybe it would go to $1800-1900 at the lowest. There's no way it would go below my PITI, unless there's such a catastrophic failure in the system that rental rates would be the least of my concern

Even if this were to happen, I would just float the rentals. I could float every one of them an extra $500/month if I absolutely had to and I would be fine. I'm not overleveraged

Now, what will actually happen is that there may be a small influx into of supply into the market, the will be a slight correction (not a crash), the people sitting on the sidelines with cash waiting to jump in will pounce on the temporarily lowers prices, and the plateau will be busted through. There will not be this giant crash.

Not to mention, people who lose their houses due to not being able to pay their mortgage still need a place to live, so demand for rentals will actually go up

The only people that get ****ed at the top of the market are guys that don't buy smart (I always buy with equity, or force equity through renovation) and guys that are overleveraged. With rates these low, I'll be absolutely fine

Sounds like you've got it all figured out. Wasn't lying when I said I wished I'd done something similar when I was younger.

Good job boyo.

Originally Posted by BigDeeps01

I work in the industry and I also do my own marketing for distressed properties, so I find deals before they hit the open market

Do you do all cash offers or use hard money/rehab loans? I've been buying at retail and I'd like to move to off-market properties for greater cash flow