Compare and Contrast Seller’s Market of 2008 with 2018
Real Estate is getting a lot of negative press lately and frankly I suspect it is only beginning. I expect the news cycle to continue to be negative on Real Estate for the next couple of years as both the bubble markets and the high end (anything 2X the Median) are in big trouble.
Buyers must be willing AND able to buy a house to complete a transaction and as affordability drops so do completed transactions. I really don’t know why this should surprise anyone but allow me to once again predict the future news cycle of real estate as the talking heads are about to go full negative.
Closed Transactions are down
Days on Market are Expanding
Total available inventory is increasing
Don’t be surprised by any of this but if you peel back the data two things will become obvious. The majority of the lost transactions are either in bubble markets where no one can afford to buy or inventory at price points 2X the median.
The 10 minute video below highlights in detail why the seller’s market of 2018 will not end like the collapse of 2008. Sorry but it is just not going to happen and the video explains why. Frankly I expect more of a slow leak than a big pop.
The video below explains the differences in detail as I invested through both sellers markets.
One last point. I am going to be a very aggressive buyer as the news cycle goes negative as the news media will scare some sellers and buyers giving me a better chance at making great deals. Sellers will be more likely to take my low ball offers and I will continue to focus below the median of my market as that part of the market is still very solid but it is not talked about because it is boring and the price points are not interesting to the news media. That said I like being ignored by others and having the news media help me buy stuff cheaper.
Z