Two Key Housing Themes: Low Inventory and Few Distressed Sales
calculatedrisk.substack.com
Every housing cycle is different. One of the key themes in this cycle is that existing home inventory is historically extremely low as many homeowners are “locked in” to their current home with low mortgage rates. Another key theme is that there will be few distressed sales as most homeowners have substantial equity.
To what degree is this impacted by the purchase of SFH by corporations/investors seeking to put them on the rental market?
I am a little surprised that LTV seemingly improved during the 2020 COVID housing rush given how aggressively prices increased in a short period of time without corresponding increases in household income.
To what degree is this impacted by the purchase of SFH by corporations/investors seeking to put them on the rental market?
I am a little surprised that LTV seemingly improved during the 2020 COVID housing rush given how aggressively prices increased in a short period of time without corresponding increases in household income.
Seems like this data has the potential to be distorted by investor activity, which peaked in the COVID housing boom (e.g. https://www.redfin.com/news/investor-home-purchases-q3-2021/)
Caveat: I am no economist, just a simple surgeon.
neat!