2018 Prediction: Erosion of Housing Affordability
Describes my experience in the last 6 months
Interest Rates forecast it will rise as much as a percent.
Home price rising 6% but lower price rising is 15% up,
This is a killer for those Millennials looking to buy their first home.
The last few years in South Pinellas County behind the Beaches and Downtown St Petersburg have been a great time to buy low CASH in UP and COMING areas and make a killing.
Retirees, single ladies, Millennial's are looking to buy, they also want to buy "updated".
Cash investors have been naturally taking advantage of these up and coming areas and renourishing
communities by buying low, rehabbing then flipping homes that should not normally appraise but with enough cash down to make it not matter. Lack of inventory and Demand rule right?
I have seen this in the summer and fall normally off season and a good time for any buyers, especially young people looking to get their foot into the American Dream. The affordable reasonably updated, small home, housing market in Pinellas Florida is booming, causing multiple offers to come in on the best home in the worst, but ok neighborhoods.
This demand pushes the once affordable home locations to shrink and so do the opportunities for first home buyers with their hope of 3% down FHA loans finding themselves just
out of a the market.
Listen to Core Logic Dec 2017, eloquently sum up this trend Erosion of Housing affordability
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