I think one of the potential pitfalls is that a 450k house 3 years ago is now 650k. So for the 700k and under market there eventually/if not already although it still seems to keep going up will be an affordability issue based on incomes.
Investors drove this up. Followed by Jim and Jane in a panic that they will be priced out forever if they don’t pay these prices. Most investors buy low. Jim and Jane buy high. At a certain point investors don’t invest because Jim and Jane can’t afford to buy even in their panic mode. Investors leave. Jim and Jane who stretched to buy are now underwater. Media interviews with Jim and Jane about the poor state of the housing market and screaming headlines about things going bad and what are they to do now. And it’s time once again for investors to come back and buy Jim and Jane’s house for a fraction of what they bought it for.
Alot of people don’t peel the onion. They take prices for face value. And doubt things will ever change. Good for some. Bad for alot.
