[quote=SD Realtor]Wrong about investors on most all of he counts. The frenzied behavior we are seeing on SFR homes over 500 is limited in great part to owner occupants, not 100% but pretty close. The investors at this point are sticking to smaller condos or flips. Once more, it is simply a lack of inventory. Why do many of these buyers remain in the frenzy? Many of them believe that prices will continue to move and/or interest rates will rise and that prices will not be adversely affected. Conversely, some of them simply do not want to wait, they waited through 09, 10, 11, 12 and realized they screwed up. I am not saying they should or should not buy now, I am just saying what goes on in many buyers minds.[/quote]
I agree with SDR that supply is really low now. Downside for people trying to time the bottom is that when you buy to live in it, you don’t need it to be the absolute bottom. All those people who skipped buying from 09-12 did miss out and probably do feel like they screwed up so they maybe under more pressure to rush in now (sorta like a person who hit 30 and wants to get married, etc and feel they have to “settle” more).
We can all say you can wait another couple years, but who knows how long the fed will keep keeping rates low. Maybe it’ll be 10 years, 5, 2 who knows. At that time, you’re 10, 5, and 2 years older after missing out from 09 (another 4 years) and not “enjoying” or “wanting” the life you want.
We all know rents have been going up 5-10% the past few years and landlords have all the control now. Renters hate this and feel they have no control paying tons for a crappy place putting more pressure to buy. I know we HATED our rental (area, neighbors, parking, safety, everything).
We bought in 09 and a house down the street rents for more than what my mortgage is now with rates so low. Even if housing goes down, unless rents go down with it, any recent (09-11?) buyer shouldn’t be stressed enough to be forced to cut prices or sell so I don’t think you’d get any recent buyers willing to cut prices much if rents are more. Mortgages were hard too so all these folks put money down so aren’t as likely to default.
