Hi there,
This is an interesting question, i know here in miami home prices have soared an absurd amount in the last 3 years. So much so that they are basically unaffordable to most working people, and outside investors are buying up lots of them. However the common fear alot of would-be buyers I see now (those who can afford the properties at their inflated prices), is that the market for homes will crash (they envision it as a stock market crash, when in reality its more like what Brad said). The biggest risk I see in these hot markets for realestate is that the prices flatten, and all those people who bought these second or third homes to flip them are caught with their hands in the cookie jar, and they can’t make a profit on their investment, then they realize they can’t afford to hold onto these houses for another few years till the market rebounds…
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