...when all of this "shadow" inventory hits the markets; either in sale or rental form? I just wonder what the final price outcome will be if/when these unsold units are dumped on the market as sales or, even, rentals. It is going to slaughter the already faltering "old" property market. They can't fill apartments and they're lowering rents as it is (a friend of mine asked for, and got, a... [more]
...when all of this "shadow" inventory hits the markets; either in sale or rental form?
I just wonder what the final price outcome will be if/when these unsold units are dumped on the market as sales or, even, rentals. It is going to slaughter the already faltering "old" property market. They can't fill apartments and they're lowering rents as it is (a friend of mine asked for, and got, a reduction in rent); what's gonna happen when all of these other units hit the market?
This is for all areas of the city. The amount of residential, let alone commercial, units coming on line in a faltering economy that will need filling is astounding. The boom isn't coming back, either.
With that being the case, will the amount of ravenous renters/buyers really be back anytime soon? Will the free money be back?
I mean, say these new developments dump their properties on the market for bargain basement prices (rental or sale). All of the old inventory, especially in walk-ups and non-luxury buildings, is going to be fighting in a market with new, shiny (albeit, perhaps cheaply built) properties. Even in the luxury markets, the competition is going to be high.
How do you guys think this situation plays out?
I'm not trying to be bearish; I'm trying to be rational. Things (housing, debt, profits, spending, etc.) became very IRRATIONAL over the last 25 years; especially the during last 10 or so. At this point it seems, to me, that we've reached the end of this joyride.
I'm just curious, a few more months into this, what the arguments are now.
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