Irrational behavior by buyers confidently betting on being able to pass on that irrationality to their customers. It works until it doesn’t.
The US rental market has been thrown into turmoil. But in no major city have rents plunged from so high by so much so fast as in San Francisco.
The winner in these crazy bidding wars isn’t the buyer. It’s the seller. For buyers, it’s a Perfect Time to make a Terrible Deal (transcript).
Only exception: San Francisco Bay Area condo prices, down from year ago.
And for buyers, it’s a Perfect Time to make a Terrible Deal. The winner in these crazy bidding wars is the seller.
There is no shortage of spec homes.
No housing market can handle the perversity of vacant homes being used as leveraged investment vehicles to generate capital gains by just sitting there.
And refinance mortgage applications plunged by over half from 2020 spike.
The distortions caused by the shift to working from anywhere are hitting households that can least afford it.
No housing market can produce enough homes when homes are massively used as vacant investment speculations. This creates an artificial shortage.