I’m sure we all already know about this but here it is anyway.
Sales are only down bc there’s no inventory.
Also, no one is willing to trade anything for anything!
I had a dealer asked me $2,500 for Tundra (trade)
It’s the same issue with housing down here in South Florida. Unit volume down, prices up. And, many owners who are thinking of selling now want prices that are 10-15% above where we are priced now. A classic low inventory, high demand situation.
It will be interesting to see how this situation resolves itself over the next 6-18 months. Do higher prices continue or does demand drop?
Its easier to justify a higher buy price on a home due to the incredibly low mortgage rates, though.
Correction: it’s the same issue with housing just about everywhere even remotely desirable.
Like a lot of market trends, I’m pretty sure with both of these (auto and home) the pendulum will swing in the opposite direction and by winter/spring the market will cool off as buyers get tired of bidding wars and sellers get over-ambitious with their asking prices. Rates will eventually rise, too.
Plus, we still haven’t really felt the effects of the pandemic shutdown on the economy overall, thanks to all of the federal stimulus money and various renter/mortgage protection programs. The best remedy in these cases is to avoid FOMO and be patient.
Until the market collapses and you need to sell! Just Bc 100k of house is only $500/mo if you lose that in value good luck coming to the closing table with a check for 100k. Bc it’s either that or your stuck in your house.
Terrible time to buy a house unless your a cash buyer or have at least 20% down and plan on staying for at least 10 years.
I’m unloading my rental properties and it’s a great market for that. Shit hole cities are collapsing yet prices are still sky high. I’m so glad I can cash out before the election.
I agree i think a reversal is in the prognosis.
Except rates will never rise again. They can’t in the house of cards the fed has created. Inflation is their game, which is way worse then rates rising. The middle class gets destroyed from inflation, it’s a huge hidden tax.