Housing prices are projected to drop soon!

[Mila]

This is based on what I have read. Apparently, the eviction protection thing they set up from the government is being lifted this month as is unemployment from COVID related issues. So A lot of people are projected to lose their homes or sell their homes for money. This means the market will be flooded and over-saturated with houses again which should bring the houses down. Has anyone heard anything about this? Do you think this will happen? 

[Damon]

I hope so, because the moratorium that was put up for tenants not having to pay rent has since ended, so now landlords can start to charge their tenants again if they want to. Maybe they'll choose to lower the rates some to help their tenants out, but who knows if every landlord would do that. 

[James]

I must say during this full time my tenants continued to preform thank goodness. There have been plenty of properties though I have shopped and looking at the rent rolls so many people were behind. 

Now the question is are people not paying because they can't pay or are people not paying because they were protected by a law and they didn't have to pay? 

If it was because there was no way they could not pay then yes maybe we will have a bit of compression in real estate values. If it was because their was a law preventing things to happen and people took advantage of that then no nothing will change and the bills will be paid and we will continue to march on. 

In our local market we have seen a tiny bit of softening but if you zoom out on a graph its not much. Real-estate values here jumped over 10% YoY which is insane. So even if we drop what are we going to drop to? Things are still going to feel expensive and affordable housing is still going to be hard to find. 

I am a member of a private fund that their full investment objective was to buy property from distressed landlords and they have been trouble finding deals. So maybe the problem is not as bad as it is being made out to be. 

[Emma]

I am not seeing any more houses for sale than usual but I guess time will tell. If anything, people will lose their houses to banks and if this is the case, we will not see the effects of this for months. You can be in a bid to lose your house with a bank for up to 2 years. I know this is what happened to my parents.

[Scarlett]

Houses in my area still seem to be up a good 20%. I haven't seen anything come down yet and I can't see it happening so long as there is a greater demand for housing than can be supplied. Last I checked, they are trying to cram even more houses on larger properties. Something was set to be passed about this. I can't remember what it is called.

[Stacey]

22 hours ago, Scarlett said:

Houses in my area still seem to be up a good 20%. I haven't seen anything come down yet and I can't see it happening so long as there is a greater demand for housing than can be supplied. Last I checked, they are trying to cram even more houses on larger properties. Something was set to be passed about this. I can't remember what it is called.

Yeah same! I think they are finally not selling for a lot over the asking price though. They seem to be selling for 10k over, the price asked, or 10k under. I am sure prices will come down for the winter season, they always do.