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I (like many) had predicted the bubble would burst months ago, yet the rally still rages on. So, does anybody see the end in sight? Some factors to consider:
Much of the drive has been cash buyers from out of state with out of state money (often cash), ie. Boston commuters who want an "urban experience" buying in the East Side of Providence; New Yorkers buying a "remote work"/semi-retirement dig in Westerly, Wickford or Newport; and people from the Boston area buying starter homes in Pawtucket, N Smithfield, or Johnston due to being priced out of the Boston suburbs.
Insanely low interest rates, putting that $400K or $500K home within reach of a middle class buyer.
No inventory whatsoever. Temporary Covid thing?
RI economy remains very weak. It cannot sustain the local housing market on its own. Marginal income people will continue to slide back.
Providence, the state's largest city, will likely face either bankruptcy and/or huge tax increases. This will make home ownership more expensive and in turn force sale prices to reflect that. Could that have ripple effects on surrounding cities/towns?
and many more...
What are your thoughts and predictions, regarding these? Does this bubble still have room to expand, or do you see an imminent collapse in the near future?
I (like many) had predicted the bubble would burst months ago, yet the rally still rages on. So, does anybody see the end in sight? Some factors to consider:
Much of the drive has been cash buyers from out of state with out of state money (often cash), ie. Boston commuters who want an "urban experience" buying in the East Side of Providence; New Yorkers buying a "remote work"/semi-retirement dig in Westerly, Wickford or Newport; and people from the Boston area buying starter homes in Pawtucket, N Smithfield, or Johnston due to being priced out of the Boston suburbs.
Insanely low interest rates, putting that $400K or $500K home within reach of a middle class buyer.
No inventory whatsoever. Temporary Covid thing?
RI economy remains very weak. It cannot sustain the local housing market on its own. Marginal income people will continue to slide back.
Providence, the state's largest city, will likely face either bankruptcy and/or huge tax increases. This will make home ownership more expensive and in turn force sale prices to reflect that. Could that have ripple effects on surrounding cities/towns?
and many more...
What are your thoughts and predictions, regarding these? Does this bubble still have room to expand, or do you see an imminent collapse in the near future?
As usual, PureBoston is taking a national phenomenon and conflating it with a supposed Rhode Island idiosyncrasy.
The truth is, at least on a national basis, the Housing market is abnormally hot in a lot of places right now.
One major piece of the puzzle? International Chinese firms. And to be fair, some domestic as well. They're buying up single family homes for high-cost, so individuals are getting priced out of the market. Then, they're converting those properties into rentals.
We are seeing the feudalization of the housing market.
And, unfortunately, neither Party seems to have any appetite to address it - although the folks in charge right now are supposedly so concerned with this type of thing.....yeah right.
One major piece of the puzzle? International Chinese firms. And to be fair, some domestic as well. They're buying up single family homes for high-cost, so individuals are getting priced out of the market. Then, they're converting those properties into rentals.
We are seeing the feudalization of the housing market.
And, unfortunately, neither Party seems to have any appetite to address it - although the folks in charge right now are supposedly so concerned with this type of thing.....yeah right.
Yeah that's another big one, that I forgot to mention. All we can hope for really, is that the time comes where they find a better place to park their investments than US real estate.
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