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re: How bad is the real estate market in BR?
Posted on 2/17/26 at 3:06 pm to lilsnappa
Posted on 2/17/26 at 3:06 pm to lilsnappa
quote:
What we found through this process is that people are only moving if that HAVE to. Meaning, transferring for work or a life change (divorce). People that want to upgrade lifestyle or need a bigger home just can't make the math work right now. They are stuck in an interest rate that is too good, and the pain of a more expensive house + higher interest rates make it not feasible for most potential buyers.
Absolutely. The issue isn't that the house cost more, it's that the mortgage cost overly and exceedingly more. It kills the value proposition of a move for the buyer. Good time to be a cash buyer however.
1
Posted on 2/19/26 at 7:09 am to WhoGeaux
The RE market in BR isn't really that good when you break down the numbers.
In most desirable areas, the carrying costs of that home are around 3% annually (taxes, insurance, maintenance). So your house has to appreciate that much just to keep up.
Add in inflation (call it 3.5%) and you need to be having a home price that doubles every decade just to break even.
That isn't happening in the BR market due to the demographics. People with real money aren't moving in. The market is surviving on people trading up (or down) who have lived here 20 years.
In most desirable areas, the carrying costs of that home are around 3% annually (taxes, insurance, maintenance). So your house has to appreciate that much just to keep up.
Add in inflation (call it 3.5%) and you need to be having a home price that doubles every decade just to break even.
That isn't happening in the BR market due to the demographics. People with real money aren't moving in. The market is surviving on people trading up (or down) who have lived here 20 years.
Posted on 2/19/26 at 7:36 am to lilsnappa
quote:
What we found through this process is that people are only moving if that HAVE to. Meaning, transferring for work or a life change (divorce).
Add in people who receive large inheritances from Boomer relatives. Had an agent tell me most of his recent deals have been cash deals where the buyer received money in an inheritance. A lot of people are trapped in their current homes due to insanely low rates. Not a bad problem unless there is a divorce etc.
Posted on 2/19/26 at 9:21 am to lilsnappa
quote:
What we found through this process is that people are only moving if that HAVE to. Meaning, transferring for work or a life change (divorce).
People that want to upgrade lifestyle or need a bigger home just can't make the math work right now. They are stuck in an interest rate that is too good, and the pain of a more expensive house + higher interest rates make it not feasible for most potential buyers.
I am a real estate investor, although not in BR. There is some merit to your comments, but don't agree about those wanting to upgrade. This depends on price point these days. I have new construction spec houses on the market. I have a $1.1M house under contract, that had 30+ showings. I have 7-8 houses in the $400-600k range that have struggled to get showings. Same story for other investors I know of. The high end buyers are spending and upgrading. The middle and above average buyers have been cautious for 8-9 months now. But the upper end seem to be more active than I have seen in years. The divide between middle class and high-end has never been more visible.
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