how housing market will change - my predictions

[Telugodura456]

current scenario:

with high interest rate appetite is gone for houses above 800k among buyers.

builders got taste of selling houses in 1 million range and dont want the burden of building sub 500k house.

So builder waiting for interest rate decline so they continue building 800k plus houses. buyers waiting for price decline or interest rate decline.

Fed not interested in rate decline if builders are not lowering prices.

so what next? how to break logjam?

Builders stop being lazy and plan and build 500-600k or sub 500k houses. This is competitive market response and ideal.

builders stop bothering and will wait for interest rate reduction or demand grow up. This is cartel market response.

Buyers adjust to above - will either buy or simply rent.

 

[Thokkalee]

26 minutes ago, Telugodura456 said:

current scenario:

with high interest rate appetite is gone for houses above 800k among buyers.

builders got taste of selling houses in 1 million range and dont want the burden of building sub 500k house.

So builder waiting for interest rate decline so they continue building 800k plus houses. buyers waiting for price decline or interest rate decline.

Fed not interested in rate decline if builders are not lowering prices.

so what next? how to break logjam?

Builders stop being lazy and plan and build 500-600k or sub 500k houses. This is competitive market response and ideal.

builders stop bothering and will wait for interest rate reduction or demand grow up. This is cartel market response.

Buyers adjust to above - will either buy or simply rent.

 

@Builder_Bramhi ninnu pilustunnaru choodu… 

[praying]

Indulo prediction emundo naku evaraina teliyajeyalani manavi

[veerigadu]

Already market cooled down a lot in just last 8 months. Bidding wars nundi current situation varakuuu. New homes only constitute 10% of overall real estate market. Average American is generally more inclined to buy a pre owned home than a new one. Preowned homes have had a decent correction already. 
 

The gist of the matter is this. Affordability drives everything. 800k plus will take a hit. Anything less than 600k will not see much impact. This is applicable to both new as well as preowned homes. 

[kevinUsa]

47 minutes ago, Telugodura456 said:

current scenario:

with high interest rate appetite is gone for houses above 800k among buyers.

builders got taste of selling houses in 1 million range and dont want the burden of building sub 500k house.

So builder waiting for interest rate decline so they continue building 800k plus houses. buyers waiting for price decline or interest rate decline.

Fed not interested in rate decline if builders are not lowering prices.

so what next? how to break logjam?

Builders stop being lazy and plan and build 500-600k or sub 500k houses. This is competitive market response and ideal.

builders stop bothering and will wait for interest rate reduction or demand grow up. This is cartel market response.

Buyers adjust to above - will either buy or simply rent.

 

You are right 

The worst thing in Canada they are doing is setting up fires on houses under construction...

U can see Oakville and Vaughn issue and conclude...

[shaktimaan]

6 minutes ago, veerigadu said:

Average American is generally more inclined to buy a pre owned home than a new one

most of the homes built during 2020-2023 are sub par quality and are overvalued

unfortunately most desi folk won't realize this and fall for the cookie cutter suburbia

 

[veerigadu]

1 minute ago, shaktimaan said:

most of the homes built during 2020-2023 are sub par quality and are overvalued

unfortunately most desi folk won't realize this and fall for the cookie cutter suburbia

 

New homes less repairs ani frnds yevarooo sepparu anna..Asaluuu em repairs vasthayiii ani kuda adagakuuu please...We dont know details. edhooo ala mundhukuuu pothunnammmm antheee...

[Sonu_Patel]

1 hour ago, Telugodura456 said:

current scenario:

with high interest rate appetite is gone for houses above 800k among buyers.

builders got taste of selling houses in 1 million range and dont want the burden of building sub 500k house.

So builder waiting for interest rate decline so they continue building 800k plus houses. buyers waiting for price decline or interest rate decline.

Fed not interested in rate decline if builders are not lowering prices.

so what next? how to break logjam?

Builders stop being lazy and plan and build 500-600k or sub 500k houses. This is competitive market response and ideal.

builders stop bothering and will wait for interest rate reduction or demand grow up. This is cartel market response.

Buyers adjust to above - will either buy or simply rent.

 

end of the year will be good time. 

[sureshkonda]

5 minutes ago, shaktimaan said:

most of the homes built during 2020-2023 are sub par quality and are overvalued

unfortunately most desi folk won't realize this and fall for the cookie cutter suburbia

 

only if you buy pulte or dr.horton type of homes.  homes built by premium builders don't have any issues so far

[veerigadu]

3 minutes ago, sureshkonda said:

only if you buy pulte or dr.horton type of homes.  homes built by premium builders don't have any issues so far

I agree on the repairs part. But grade and quality has gone down. Annitloooo vinyl siding and carpet flooring is common.

The amount of money they are spending on a typical new home is far less these days. 

[veerigadu]

5 minutes ago, Sonu_Patel said:

end of the year will be good time. 

I wish you were right. But Builders syndicate are being very strategic. They are keeping the shortage intact for new homes. 

[cameraman]

6 minutes ago, Sonu_Patel said:

end of the year will be good time. 

dallas lo it will remain same

[desiboys]

buy a land and build your home

[cameraman]

28 minutes ago, veerigadu said:

Already market cooled down a lot in just last 8 months. Bidding wars nundi current situation varakuuu. New homes only constitute 10% of overall real estate market. Average American is generally more inclined to buy a pre owned home than a new one. Preowned homes have had a decent correction already. 
 

The gist of the matter is this. Affordability drives everything. 800k plus will take a hit. Anything less than 600k will not see much impact. This is applicable to both new as well as preowned homes. 

dallas lo inka multiple offers situation undi on old homes 

[cameraman]

1 minute ago, desiboys said:

buy a land and build your home

its not like india.. big headache to get permissions and dealing with contractor's.