The housing market is now entering a visible slowdown – affordability challenges, low inventory, and higher interest rates are now coming home to roost.
ByReal estate cycles turn as slowly as a massive cruise ship. Unlike the stock market where a stock like Facebook can fall 20 percent overnight, real estate tends to boom and bust at a much slower rate. There is an odd logic to the current market. “We bought a few years ago and look how late to the game you are!” Then when asked if some would buy today, “no, but it can only go up!” Coming from an investor mindset, if housing values are priced in a good range you should buy, just like you would buy an undervalued stock. When you are spending $1 million on a crap shack, you need to do some serious due diligence. It is odd that house humpers always use the “but you can’t treat your home like an investment” line and then talk about how reasonable it is to pay for an absurd amount for a property in a subpar neighborhood with underperforming schools. Then they compare real estate to stocks! Of course it was a matter of time where the market would hit a bump and here we are. Even Robert Shiller hints at this being a turning point…
