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Updated over 7 years ago, 03/15/2017
- Real Estate Investor
- the villages, FL
- 3,497
- Votes |
- 5,700
- Posts
are we investors going to cause the recession?
I'm sure most of you are laughing at the label on this thread. Hear me out.
I started a thread several days ago about how high can real estate prices go. The majority of the responders have all acknowledged that we are due for at least a correction in most markets. I realize this is regional. But what if we cause the problems. I heard from so many that have decided to not purchase single-family homes at the present time. I believe that lowers demand... I have always had the feeling that when everyone is getting on the train, I get off. When everyone is getting off the train, I get on. We all know which train is on the tracks currently.
Many people are currently paying much higher prices for flips than they ever had to pay before. This results in a much smaller profit. Will we ever reach the point where so many people have decided not to purchase single-family residences, that the demand will drop below the supply. Everyone knows what happens at that time.
There are more and more of the college kids that are not taking the conventional route to get a job, buy a home, and maybe get married. That will also reduce the demand on the supply of single-family residences. It also helps to increase the number of apartment renters, whatever the level of apartment might happen to be.
In the long range, there are fewer children being born per couple. I believe it takes 1.9 to keep the population rate the same. Japan is going through a period of time right now where they are not even keeping up with the population due to fewer births.
The average life expectancy came down in the most recent numbers for the first time in many years. Is this also a trend?
I guess time will tell whether we have anything to worry about…