Good read and hopefully good news!
Not necessarily good news. Usually (history tells us) that after a massive hike in House prices, one of two things happen. Either:
- the bubble bursts big time (1994, 1997, 2006), or
- the market goes stagnant while prices slowly re-adjust.
#1 happens in two circumstances, an interest rate hike or a correction in the debt offering (i.e. claw-backs (shorting) from the banks of sub-prime mortgage lending) The latter of these two happened in 2006, causing the collapse of the worldwide economy. The former has happened in each of the other two years (plus in 2015 in Australia)
#2 happens in every other case, and people just refrain from buying as they wait for prices to drop.
In #1 people will be out for blood. Anyone who finds themselves in financial trouble because of a home purchase will be looking for some form of financial recovery. There could likely by lawsuits flying wild claiming Realtors misled the buyers, coerced them into buying without inspections etc. Either way, the inspection market will go completely dead until things sort themselves out.
In #2, people who do venture out to buy, will do so in a more critical manner. These are likely to demand Home Inspections, but be more critical of the HI services they get, far more ready to sue if they feel negligence is at play. In addition there are likely to be way less buyers, so way less inspections.
Either way, until the market resets, I don’t see any news as being good news for inspectors who don’t change their thought processes or offerings. I see franchises and multi-inspection companies being particularly vulnerable as their carrying costs are much higher and they rely on volume.
Hopefully good news for home inspectors.
As for home purchasers that bought into the that narrative, forgo the inspection, TOO BAD!
Maybe homies can capitalize using a marketing strategy. Know what you purchase. Protect your real estate/family/financial investment.