We don't have huge appreciation spikes, so even with drops in oil we don't see big drops.

Inflation sucks because it compounds.Once interest rate waters recede back to the 5 - 5.5% levels, home prices will spike dramatically higher (just like other rate sensitive assets) as literally millions of households get back into the market looking for a home.

The influx of people and conversions of single units to Multi units have spiked dramatically in the past three years and still happening where I can say that I see a increasingly demanding rental environment predominantly out of the Brooklyn populatIon. 3 out of my 6 units are rented to entire families who moved from betstuy exactly due to the fact (from what I was told)leases were not being renewed to tenants who had no substantial tenure their or could not afford new leases due to “upgrades“.

I would recommend locking interest for five years if possible to be able to ride out any upward spikes that may be coming our way. 

I used to have this approach but with only quarterly adjustments you miss all the spikes that happen from demand. 

You need a very specific kind of market, a satellite market with strong ancillary feed from a major metropolitan market with significant appreciation, feeding back into revenue growth in the satellite market BUT the satellite market has not realized that big price spike as of yet.

During Covid it spiked up to $1700, crashed back down to the mid-$400s and spiked back up to over $1400 before stabilizing in mid-2022 where it has been in the range of $450-$500 since. 

I'm based in Vegas, and I was looking at buying to do rent by room, but with current interest rates and spike in prices, I wasn't seeing the numbers make sense from a cash flow perspective.

You can get a good idea when you look at DOM (days on market) and pay attention to what price points sit for months and what price points sell in a couple days.A lot of MSAs have seen prices soften since rates have spiked last fall, which goes to show that low rates were partially responsible for the exuberance in price gains over the last few years.

As long as we don’t see a spike in unemployment above 5% and inflation doesn’t tick up above 3% by Q3, the 2024 environment should bring back demand for homes.