Amy Perkins
Senior Member
- Joined
- Jul 20, 2003
- Professional Status
- Certified Residential Appraiser
- State
- Tennessee
Lets Talk about the real issue here, Appraisals!
Demand disappears when the price is too high. You cannot increase home prices faster than the buyers wages for long. They simply cannot make the payments. The lack of wage growth puts pressure on builders. Smaller lots, smaller houses are needed. Anyone in the 1950s with over 1200 SF was living large. Who builds for that market now?How do you think supply and demand comes into balance then?
Demand disappears when the price is too high. You cannot increase home prices faster than the buyers wages for long. They simply cannot make the payments. The lack of wage growth puts pressure on builders. Smaller lots, smaller houses are needed. Anyone in the 1950s with over 1200 SF was living large. Who builds for that market now?
Yeah but that's not right now. What i am saying is that when that starts happening you will see closed sales declining, dom increasing and active listings building. Then it is time to get cautious. We are not anywhere close to that.
What are tax cuts and more favorable trade deals going to do? There is a lot of things going on right now that can keep demand strong in coming years.
Did that happen in 2006? In my area we were late to the party as we saw other places decline. But when it hit and prices were actually beginning to fall, we saw builders trying to double down, fraud etc but the actual fall was basically a six week event and Dom went from 40 to only. 60 days the market simply froze in place. From then on it was slow decline, slow sales, etc. It started no differently than a normal market hiccup.What i am saying is that when that starts happening you will see closed sales declining, dom increasing and active listings building.
Did that happen in 2006? In my area we were late to the party as we saw other places decline. But when it hit and prices were actually beginning to fall, we saw builders trying to double down, fraud etc but the actual fall was basically a six week event and Dom went from 40 to only. 60 days the market simply froze in place. From then on it was slow decline, slow sales, etc. It started no differently than a normal market hiccup.