Mortgage applications have fallen to their lowest point since 1995! Will we see a corresponding fall in home prices or will investors continue to gobble up the inventory? Either way it should make for some interesting times over the next few years in the housing market.
Source: ZeroHedge
In the Chicago area I see a lot of listings ‘pending’ so investors are taking what’s available
Dennis,
Investors are also grabbing a lot of the inventory here in Memphis as well. Thanks for reading and sharing,
Kevin
Doesn’t that typically mean a bull market in rents, as more people rent rather than buy? That has been the case in the NY Metro area.
Jon,
I think that it could, as you are seeing in New York. But I wonder if that is good long term as well. Sure, we landlords get to charge higher rents as the supply of rental housing is reduced due to the former homeowners now renting. But as the supply of rental housing gets tighter and tighter (how much new apartment construction are they allowing in the NYC area?) thus driving up rents, will folks look for cheaper alternatives? How much rent can they afford? Will they double up of move down to lower priced properties as discussed here: http://www.smarterlandlording.com/empty-pockets-ahead/ ?
Time will tell but I bet many folks are feeling squeezed right now.
Thanks for reading and for commenting, I do appreciate it,
Kevin
I guess all RE, like politics, is local. I’ve invested in a gentrifying area, so high rents in Manhattan drive people here looking for a better deal. Rents don’t rise if no one can pay it. Young roommates are common here, as are people mobile enough to look to the next tier down neighborhood, often only a mile or 2 away in this high density area. And here in Jersey City they’re building rentals like crazy, like 5,000 in the next 5 years. There’s even a controversial plan for an 80 unit tower of 250 ft micro-apartments.
BTW, I was driven to your site by hearing your interview on the Biggerpockets podcast. It was the first time I heard someone just doing it the sensible old fashioned way like us, no “get rich quick” schemes like flipping or wholesaling. Only 12 rental units for now, but things are way more expensive here.
Jon,
Thanks for the info about your area. They are building some around here as well.
Thanks also for the kind words. I really do appreciate it.
Kevin