|
May stats were out and sales were down 20% from 10 yr averages. If June stats come out low then it is a sign of things to come, prices always lag behind # of sales.
Inventory is at a high, especially for condo units, there's many more projects and buildings coming up, and I just don't see the demand for them. Speculators have basically dissipated as you can't buy a pre-sale condo and then sell it for 30% profit like you can in prior years.
Interest rates are going up, making homes less affordable.
I just see way too many people with a herd mentality, where they want to be like their friends or families that recently purchased a property and now they want one too. But they don't fully know the true costs of ownership.
I see kids in their early 20s buying condos without a stable career. Borrowing money from their parents for the down payment, and these are not the rich families either, but average earning ones. These people will be affected most by increases in interest rates, or any changes in their employment.
|