Homebuying Activity Sharply Down

[bjl584]

Homebuying activity is falling off a cliff (yahoo.com)

[ua_guy]

The headline is a little dramatic. Our HCOL market here in the PNW is off by about 4% and average days on market compared to last year is up to 14, from 10. That's still smoking hot from a historical perspective.

Investors appear to be taking a beating. AirBnB investment properties, specifically.

[kork13]

Investors appear to be taking a beating. AirBnB investment properties, specifically.

Good.


Properties getting scooped up en masse then turned into STRs has been great for investors, but detrimental in every other possible way for your average joe homebuyer, as well as small-time rental property investors. They swarm a market, drive up demand/sale prices, and take up much-needed housing capacity from people who, I dunno, actually try to LIVE in the town.

[disneysteve]

Good.


Properties getting scooped up en masse then turned into STRs has been great for investors, but detrimental in every other possible way for your average joe homebuyer, as well as small-time rental property investors. They swarm a market, drive up demand/sale prices, and take up much-needed housing capacity from people who, I dunno, actually try to LIVE in the town.

Many cities have passed STR bans but shutting them all down is a game of whac-a-mole.

[bjl584]

Good.


Properties getting scooped up en masse then turned into STRs has been great for investors, but detrimental in every other possible way for your average joe homebuyer, as well as small-time rental property investors. They swarm a market, drive up demand/sale prices, and take up much-needed housing capacity from people who, I dunno, actually try to LIVE in the town.

Same thing happened in 2008 - 2009. STR's weren't as popular then, but cash buyers swooped in and turned many properties into long term rentals. It pushed a lot of would be homebuyers out of the market.