A housing market collapse could leave you with no choice but to sell your home, according to some experts.
The collapse of the housing market in the U.S. in 2016-17 has left many of us feeling like we are stuck in a never-ending cycle of renting, owning and flipping homes to pay for a down payment on a new one.
It is a process that can take anywhere from a year to a decade to complete, experts say.
“The housing market is now a whole new market that requires a new strategy for buying,” said Matti Högberg, chief investment officer at the Minneapolis-based investment management firm Katten Muchin Rosenbloom.
“You’re basically looking for something that can be bought in the same year or two months.”
You can’t go into a market where you can’t see a seller for years and years and not be interested in a house,” Högoberg said.”
What is different now is that we can see what people are buying, we know what they are looking for, we have some real estate analytics on what people like and don’t like,” she said.
While a new market can seem like a whole different ballgame, some experts say it can also be extremely risky.”
Högogen points to a few reasons why buying a home should be a very different endeavor from renting a house. “
If you’re looking to buy and rent in the short-term, it’s very, very risky to do it.”
Högogen points to a few reasons why buying a home should be a very different endeavor from renting a house.
The first is that many people can’t afford to buy their own home, so they look to rent instead.
The second is that most people have already invested in their home and they have the equity in the house to repay it down the road, she said, as well as the experience to pay down any loans or mortgage that may be outstanding.
The third reason is that buying a house is often considered a relatively low-risk process compared to renting a home, and many people feel like they are getting ahead of themselves by doing so.
“If you look at a market that is going through a downturn and you see a lot more people with money, it doesn’t really make sense to put all of that money into a property that is less than 20 years old,” said Högl.
“People are just taking a little bit of money out of their pocket and hoping that it will pay off down the line.”
A number of factors could cause a person to sell their home, including a decline in interest rates and a change in mortgage payments.
For some, that could lead to a loss of the investment in the property.
Högl pointed to the example of a property purchased in a market bubble in the late 1990s.
“There was a housing bubble in 1993-94.
When that bubble burst, you have a lot less money to spend,” she explained.
“That’s the thing about a bubble is that you can get into a bubble, and you can lose money, but people will try to get out.”
In this market, you don’t know how long it will last.
People think that it’s going to last five or 10 years, but it could be much longer.
“Hohgberg said people are now looking for a lower-risk, higher-return strategy to buy.”
Hogberg said it could also be a sign of the market stabilizing, as people are starting to look to buy in anticipation of a downturn in the housing price and other factors.””
The fact that we have such a high level of uncertainty makes the decision a lot easier.”
Hogberg said it could also be a sign of the market stabilizing, as people are starting to look to buy in anticipation of a downturn in the housing price and other factors.
“It’s not necessarily a bad thing, but there are people out there that are not going to buy houses for years,” she added.
“It’s a sign that the market is stabilizing and it’s a signal that there is some upside to owning a house.”
Hokkaido is the latest to experience a housing crisis.
The Japanese island of Hokkaido, which was home to more than two million people until it was annexed by Japan in 1931, was the first to experience the housing crisis in the 1990s when it experienced a price boom that lasted from 1997 to 2002.