Vacation Home Buying Fizzling. RV's too?

restlessways wrote:
I hear the same bogus arguments this time around as I did back in 2008 when the whole housing market took a dump. People never learn. I work on houses for a living. They are money pits, not magical money trees.

Not only is the housing market already tanking, RVs, boats, trucks, cars and everything else are following suit. Interest rates on mortgages have doubled since last August. That means the average house payment is up over 1/3 since that time, and we're talking houses that are at the pinnacle price peak of the biggest real estate bubble in history.

The entire situation was completely unsustainable, and now it's time to get ready for the fallout. I'm already seeing WAY more used RVs for sale than just a month ago. When money gets tight, the toys are the first to go. Forget a crashing housing market, I'm anticipating everything else crashing much worse before then, because it's all interest rate sensitive. For somebody like me who purchases things in cash, I will be enjoying watching this unfold.

I worked as an analyst in the REO division of a large bank for years right around the big bubble. Maybe your geography is different but houses are not money pits. Statistically speaking, houses almost always are an appreciating asset. And in my neck of the woods, I've seen exponentially less used RV's for sale than the past 2 years. The bubble from 2008 was caused by investors buying and flipping homes and no doc loans that essentially provided anyone with a face way more credit than they could afford. The loans were set up to fail because all the large major banks and hedge funds were buying and promoting poor loan paper and insuring against it's failure. They wanted it to fail. They made billions on the insurance. It was a complete set up. Completely different scenario than today. Most homes being bought now are consumers who ended up with a bit more cash due to being dormant during COVID and are exiting large metropolitan areas because they can work remote or got new jobs in a location with a lower cost of living. Housing prices are up because there is a shortage of homes in desirable areas. Lots of demand, no supply. We see supply and demand issues affecting literally everything right now, mostly a fallout of Covid. This is a completely different and normal part of economics and the sky is not falling. The Fed is increasing rates to help curb inflation caused by this unpredicted supply and demand issue. Not to mention they haven't raised rates in a very long time. It's not doom and gloom.