All Forum Posts by: Fred K.

@Russell Brazil

I see this mentioned often but honestly I’m not sure if inflation is what we are seeing here. This is a classic supply and demand issue.

I’m seeing about 1-2% appreciation per MONTH in a lot of markets while incomes aren’t going up much at all (in MCOL and HCOL areas).

Surprisingly I see little discussion about the crazy bidding wars and the record prices being set every week.

I know no one knows whether prices will go up or down in the future, but is anyone else getting concerned? What happens when additional inventory comes to the market? Looking at the case Schiller index, it seems that RE either goes up or down, it rarely flatlines.

Is everyone just buying as long as properties cashflow? How do you make sure you aren’t overleverged?

@Mike Baxter

I wonder how high this is when compared with 2019 or 2018

@Dan Heuschele

You mention you see little reason for the historical appreciation to change moving forward, but isn’t it also a stretch to say that 10% appreciation will continue for years to come? Past performance isn’t indicative of future returns.

@Ryan Talmadge

Did the fed sign guarantee low interest rates through 20205 in writing? I genuinely can’t tell if you are being sarcastic or not.

@Zachary Beach

Rates staying low for decades? I suggest watching Ray Dalio’s videos on debt cycles.

@David Song

This is quite amazing. Genuinely curious, do we think this is sustainable?

Here is an interesting article from the horse’s mouth on this topic:

https://www.stlouisfed.org/publications/housing-market-perspectives/2020/storm-clouds-approaching-housing-market

@Cameron Lam

Thanks for sharing your experiences. Question: how did you trust the BP partner that reached out to you to do deals with? Was there a legal agreement to hold parties accountable?

@Russell Brazil

I do wonder when inventory will start picking back up again. At this rate, in a few years there aren’t going to be many homes left to buy in major metro areas!