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Originally Posted by Packer Fan
That is one persons opinion, I have no idea who he is. Not that I totally disagree. But here is the thing you are missing - 2/3 of buyers in TV are CASH buyers - no mortgage. they don't care. Many times they are moving from areas where they got a lot of money for their house. That said, interest rates WILL have an effect as housing price escalation abates in the north and west. However, DEMAND is not going down anytime soon, especially in Florida with 10000 people retiring a day, and more and more remote workers wanting to live in income tax free Florida.
We are all paying for the fact we have underbuilt for over 10 years so demand is way higher than supply, and we are in an inflationary environment that we all know the cause of (elections have consequences).
However, I think interest rates are going WAY higher, like mortgages over 7% a year from now, they will have to be to slow down inflation. So the housing will slow down but there is no bubble.
My prediction? No drop in prices, but only 5% a year price inflation in TV. Kind of more back to normal.
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I agree on all your points. Plus, this market is nothing like what was going on in 2008. It's strictly too much demand and not enough supply.
It's like this all over the country. But Florida is even more extreme since there's so many boomers retiring and wanting to move to warmer weather. And as you said, more poeple than ever are retiring early.
We're trying to downsize here in Indiana since we'll be in TV for 5 or 6 months a year. We have people wanting our house now but we're struggling to find a smaller place. Very few on the market.
Higher interest rates will have some effect and I think prices may cool off some, but not a lot. In my opinion.