[manaboutown]

It has been an amazing run! When will it stop? Then what?

Anyone care to opine?

US home price growth reaches new high for fourth consecutive month

[Stu from NYC]

They will continue to go up until they go down.

And think down in the next few months.

[Koapaka]

I'm afraid with this inflation we are going to see the price of NOTHING including housing retreat/stabilize and those of us old enough to remember might think the inflation of the Carter administration and16% home loan rates and rationed gasoline issues of old were a walk in the park.

[inda50]

It seems to me that house prices and the stock market are intertwined, and more recently supply line shortages of labor and materials. Any one of these can start a cascade in the others. Right now they are all strong. Which will be the first to break ? There are a lot of people involved in and promoting the stock market, so it will probably keep clicking along until some thing unforeseen happens. Then there are housing prices. Just when I think they can't go any higher, they do. Usually competition in the building market keep prices from escalating, but due to all builders competing to find labor and materials, supply line shortages have added to the cost of doing business, so this inflates the cost of a new home. So I think the prices will continue to increase slowly for at least another 11 to 12 Months.

[manaboutown]

Materials are currently sometimes difficult to find and mostly priced higher than they were a brief time ago. Builders must comply with tighter building codes and environmental impact issues both of which add to costs. The supply-demand situation means the market is tight. Higher interest rates are on the horizon which may add downward pressure as folks can only pay so much a month. It is a conundrum.

[Toymeister]

Continuing price increases until the mid term Congress and Senate are seated. The future will be known until 2024 then. Wall Street hates uncertainty, as already pointed out the stock market is intertwined to some degree with home prices.

[daniel200]

Originally Posted by manaboutown

It has been an amazing run! When will it stop? Then what?

Anyone care to opine?

US home price growth reaches new high for fourth consecutive month

It’s all about affordability. With home mortgage interest rates at record lows, more people can afford to buy (and bigger and more expensive).

IF interest rates take off to 6 or 8% there will be many priced out of the mortgage market because they can’t meet the monthly mortgage payment for the home they want to purchase.

I have mixed feelings on the future of interest rates. But a return to normal rates would have a negative impact on demand.

[Michael G.]

Those lucky snow birds.
When their ready to sell, they'll make thousands on the sale of their second house.

[RICH1]

Buy a pup tent & ammo...

[JP]

Car prices are starting to decline I'm thinking houses not far behind.

[Robnlaura]

Again a lot of chatter about a pending housing crash be careful of those fully vested in keeping home prices high realtors Zillow and realtor.com I believe we are in for a moderate correction. When gas hits $5 we will really be in trouble

[TNGary]

Originally Posted by Robnlaura

Again a lot of chatter about a pending housing crash be careful of those fully vested in keeping home prices high realtors Zillow and realtor.com I believe we are in for a moderate correction. When gas hits $5 we will really be in trouble

Good comment, many principles have an interest in keeping the prices high: Realtors, sellers, appraisers, loan companies, just to name a few it's a stacked deck long term.

Regarding future prognosis: less QE will move rates up. Supply will increase. The developer will adjust build rate down to keep the buyers in a demand mode.
Resales available will increase. Mid priced homes will continue to price increase. Panic buying of mid priced resale will moderate. High end stuff will have a slower price increase. Buyers who bought the high dollar homes to rent and are highly leveraged will need to liquidate as they will not be able to feed the negative cash flow and will not see appreciation off-setting the negative cash flow.

[terenceanne]

Another housing crash is ahead IMO

Everything is in line with people buying homes they can't afford because of low mortgage rates, Salaries have not increased, Home valuations are at silly levels - here in the villages we have regular homes selling for $700's $800's or more - Villas at crazy numbers. We could not buy our own house at this point........

[BlueStarAirlines]

Originally Posted by TNGary

Good comment, many principles have an interest in keeping the prices high: Realtors, sellers, appraisers, loan companies, just to name a few it's a stacked deck long term.

I've been doing a lot of research and noticed housing prices are starting to drop in a handful of locations and most houses are on the market for longer than they have been the last year or so. I ran across this guy who has a pretty good series of videos. I found this one to be particularly interesting as I had read about Zillow entering the buying market, but had no idea to the extent. Its worth a watch- PROFIT from 2021 Housing Crash! (Here's How) - YouTube

It's not a matter of if but when.....

[Jeanette.U]

The house for sale on our street has had a $40k reduction recently.