Everyone wants the value of resale homes to increase and they want demand to continue sliding up at a rapid rate.
The hope is that things will quickly return to at least where they were before the gigantic market subsidence that we've dealt with over the past few years.
What was different about this past bad market was that even high incomed and wealthy people all but stopped buying homes. In my years, I don’t recall ever before experiencing that.
In my own case, in 2011-2012 I had three homes listed in Dallas’ high end market known as Highland Park. All three in the 7 figure range. Each of them was listed at a substantial discount from what the owners had invested.
I had all three listed for over a year. None brought an offer.
Month after month, I studied that market. There were very few sales; most of the homes that went off of the market did so because the owners leased them.
The market in Highland Park has returned somewhat. There are sales and that’s a good thing. But most are still at substantial loses to the sellers.
So How About the Future?
What is troubling is that mortgage rates continue to be artificially set by the Fed, and are not being dictated by the market.
As the real estate market recovers, the Fed is going to want to begin to let rates rise. That could easily wipe out any rise in real estate prices, as well as stump sales.
William S. Cherry & No Company
America’s Wealth Coach
972 677-7028
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