Poor outlook for the US residential property market
With the collapse of another residential loan lender, it is going to be more difficult for buyers to get a mortgage, interest rates are going up, and the already depressed residential property market is just going to get more depressed.
This may be good news for those looking to buy, as prices will inevitably go south. But for most homeowners, this will mean the value of mortgages may possibly exceed the value of their home. And property investors may have difficulty selling off their property to even break even.
To those with liquid assets, and able to lock their cash in investment properties, it may be a good move buy in sometime around Christmas, when the market will be at it’s lowest. Or buy in overseas, in places like Melbourne, Australia.