What is also interesting is that, at least in the Dallas/Fort Worth areas a whole lot of new apartment complexes are being built. For many years home ownership here has been touted as a method to save money by buying a home both in rents that were as high as typical mortgages and saving by investing in the home’s equity value.
In the last 15 years I really do not recall so many apartment complexes being built here. Of course investment companies that build these apartment complexes always seem to have more information on the factors of the economy than the Local Joe. Makes a person wonder if this is a sign on the housing market cooling off?
:d :d :d
Manny… keep in mind that most municipalities have long-term 20 yr/50yr plans that are generally for “high-density” housing. It is rare to get permits for low-density in a major city anymore. Sprawl has eliminated the excess properties, so the only expansion left is to go “up”. There is no longer any “out” remaining.
I would say buyers are over extending themselves as to what they can afford. hey are lead to beleive they can afford it, but can’t.
A Home Inspection on those older homes for first time buyers coupled with sellers working three jobs and still can’t keep up their houses, never mind repair them, push the cost of the house over the top and appraisers aren’t going for it.
Low interest rates promote home buying to people that are really not ready to buy.
Back when interest rates were in the 20’s, they cam up with 3-5 yr ARM’s that qualified at the lowest rate. But surprise surprise, when the rates went up, their income did not precede it.
EPA regulations on getting permits to build new homes are now out of reach for most all home builders. To get a lot permit, you need many types of reports due to EPA regulations, which push lot development costs way up. With most all millennials not wanting the maintenance of a home or the payment, rental buildings are popping up everywhere. Home sales are still depressed, and not where they were since 2006; and may not be for years.