Looks like Homeowners are bending, but not breaking. Is the tsunami of foreclosures due to the mortgage renewal cliff that many ppl on this sub predicted would happen in 2026 officially cancelled?
As we all know, Crooked Carney has promised to pump billions into RENTAL ONLY buildings over the coming years, which most likely won't be completed and hit the market until 2033. Many ppl on this sub have said these rental purpose builds will crash the RE market even further. Would it be prudent for Buyers/Renters to wait on the sidelines for another 7-8 years to get that deep discount on housing??
GREAT NEWS FOLKS!!! More RENTAL ONLY HOMES on the way!!!!
Lately I've been seeing a LOT of posts from BUYERS asking if they're stretching themselves thin financially to buy a detached house. And to that I say: Why BUY when you can just RENT the damn house?? You could literally sit in a lawn chair drinking a beer while watching your Landlord mow the lawn, or sip a morning coffee from the comfort of your living room while waiving to your Landlord who's outside in -20 shoveling the driveway.
An appliance breaks down? Your LandLord now has to fix/replace on their own dime while you saved yourself thousands of dollars! You get to live a maintenance free lifestyle while getting all the perks that come with a detached home, along with banking a ton of savings every month that you can put into the S&P500!!
Should buyers stop bending over backwards just to buy a detached house, and instead shift their focus on forever renting a detached home instead??
This sums up the RE market right now. Homeowners desperately trying to offload their over inflated, depreciating assets to the next generation. Renters have the cash to pick up these distressed assets, but are choosing to keep their 6 figure down payments in the S&P500 instead and continue to roll in the profits. They've essentially taken the RE market hostage.
The average Renter has made $180K off their $150K down payment in the stock market since 2020. This of course is based on $150K being the average 20% down payment required to purchase in Ontario, where the average home price is currently $847K.
I know a lot of renters had these down payments locked & loaded between 2020-2022 before getting pushed out of the market due to insane bidding wars and bully offers. But since then, that $150K sat in the market and gained 120%, totaling at least $330K in down payment value today (after compounding returns/dividends).
I'm curious if any are considering locking in their profits over the coming months and finally take the plunge into homeownership for upcoming Fall market?
We've been at 2016 prices on all property types for a while now. Feels like we're due for another leg down in prices soon. I'm thinking we could be notching down to 2015 prices by end of summer. What do y'all think?