The “Great Stall” Has Begun
Summary
This BiggerPockets article discusses the current state of the housing market, suggesting a "Great Stall" period of stagnant prices and high mortgage rates. Hosts should understand this market dynamic as it impacts investment decisions and profitability, considering the potential scenarios of a crash, melt up, or prolonged stall.
Key Insights
- •Affordability, influenced by wages, home prices, and mortgage rates, is the key variable to watch.
- •The article suggests the housing market is entering a "Great Stall," characterized by stagnant home prices and high mortgage rates, which could last for years.
- •The article outlines three potential scenarios: a housing crash, a melt-up with rapid price acceleration, and the Great Stall, with the Great Stall being the most likely.
Action Items
- ✓Hosts should stay informed on housing market trends and analyze the impact on their investment strategies and profitability.Effort: lowImpact: medium
- ✓Consider the potential impact of these scenarios on your STR investments and adjust strategies accordingly, especially regarding pricing and occupancy.Effort: mediumImpact: medium
Tools & Resources
- →BiggerPockets: The article is from BiggerPockets, a real estate investment and analysis website.(biggerpockets.com)
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