MaxedOutMama sees a recession coming. Let's see if I'm smart enough to recap her post:
- Housing in the dumper--continue loss of value
- Building slows
- High gas prices
- Interest rates higher
Over in Destin, we talked to a couple who offered 30% less than asking price on a gorgeous new condo (probably the premier property there) and it was accepted immediately. On 1.5 million, they offered one million. Makes me wonder if they had offered 50% off the asking price if they'd have gotten it. Definitely a buyers market, there is just so much inventory. But the realtors and everyone else seem to be keep a cheery face on it all. Building still going like gangbusters, but the developers are putting new projects on hold. Is it at the bottom?
And I wonder about places like Houston. Driving around the Sam Houston, I noticed lots of open commercial space by the airport business district (IAH). Where we live, The Woodlands, is building and building and has around 90% occupancy. Even within our relatively small community of 90,000 or so, different parts of the development are doing better and worse. It's kind of weird.
I'm wondering if now is a good time to buy rental properties (small, starter home types) or not. Any opinions?