From Russia without Cash
As previously mentioned, even if you don’t see it, the real estate market in the US is at a plateau that will have a slight fall off coming soon.
Why? Many reasons. People reach a point that they just say no to high prices, new sale and rental inventory is coming to market, jobs for the middle class have stagnent wages but one of the big deals is the lack of foreign money that has stopped buying.
And another reason they are stopping is because the feds are now digging into deals where there was serious money laundering.
This CNBC article explains it in more detail but the just know that many foreign buyers are just trying to hide cash from their countries. US real estate is not a bad place to stash it. But now, it is much harder.
It is also a tiny silver lining for “real” buyers in that they may be able to bid with a mortgage contingency and a logical price instead of fighting cash deals at insane prices.
Of course, this only affects certain markets, but if you are in NYC, South Florida, LA or the Bay Area, this is a relief.