Quote:
Originally Posted by chassis
@zx10guy you see demand rising. Do you also see supply rising? I haven’t seen it, until 2018 or 2019, and then only slowly. Principal dwelling singe family homes have been under built since the GFC. Today is the perfect storm if you earn a living selling principal dwelling single family homes.
Demand will even out because it’s tied to population growth. Interest rates won’t change the fact that people need a roof over their heads.
Supply in term of home construction needs to accelerate, I see this as a major factor explaining today’s prices. Supply.
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Yes, demand is rising. But I think it's fueled by irrational exuberance. Yes, supply hasn't kept up with demand over the years. But you haven't explained why in one year, all these buyers just woke up and had to jump in now to get a home. These people are living some place WITH roof over their heads. Per my post, I don't see any of these new buyers being from the pool of homeless people that NEED a roof over their heads. Certainly, the demand in previous years doesn't justify the double digit acceleration we're seeing now that literally has happened overnight.