The areas that saw the most appreciation had a tremendous amount of speculation... When the economy came tumbling down so did the investors that bought at inflated prices. This made the downward slope quite steep. We will see the same thing again IF we see another bad recession. This time, it will be all those folks that bought vacation homes knowing their mortgage payments will be covered by short term tenants... Airbnb buyers. If the economy goes down, people will cut back on traveling and that could become the next great unwind. Hoping that doesn't happen but from my viewpoint, real estate values are not sustainable at current levels and a recession will cause the correction. I don't have a call on when that will be but I don't see how it can be avoided.
The areas that saw the most appreciation had a tremendous amount of speculation... When the economy came tumbling down so did the investors that bought at inflated prices. This made the downward slope quite steep. We will see the same thing again IF we see another bad recession. This time, it will be all those folks that bought vacation homes knowing their mortgage payments will be covered by short term tenants... Airbnb buyers. If the economy goes down, people will cut back on traveling and that could become the next great unwind. Hoping that doesn't happen but from my viewpoint, real estate values are not sustainable at current levels and a recession will cause the correction. I don't have a call on when that will be but I don't see how it can be avoided.
Inference: the trend is common but the magnitudes are regional. Also brought to mind this quote…
“All happy families are alike; each unhappy family is unhappy in its own way.”
― Leo Tolstoy , Anna Karenina
I guess that means we are happy in the aggregate.