Vacation Home Buying Fizzling. RV's too?
How many think this article from the Washington Post could be reprinted substituting "RV's and Boats" for "Vacation Homes"? Those monthly payments are going to start looking ugly when you're finding ...
Forum Discussion
restlessways wrote:. Please send some of that tanking Truck and boat markets my way. Local dealers have literally no inventory for sale. One local dealer advertises the have withheld one truck from sale so potential customer to test drive before ordering. Other dealers are running ads offering to buy your car or truck with nary a peep about having something available to actually sell.
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.
Boats are the same. No inventory, or boats available without the outboard motor which the dealer will only commit to having “hopefully in three months”. I can get on a list in case someone backs out when their ordered boat comes in, but the dealer said the list is so long it is very unlikely a boat similar to what I am seeking will be available this boating season.
Of course it is inevitable the current markets will eventually peak, inventories will recover, and prices will moderate. But when and at what levels? If it is in 2023 and prices fall 10% it sure isn’t worth it to me to miss a boating season or drive my old truck in hopes of getting that 10%. And what if that 10% fall in prices only happens after another 15% run up?
Finally, your premise homes aren’t a money generating machine has been proven inaccurate throughout history. Over the long term home ownership has proven to appreciate in value, even if you bought at market peaks. There are rare exceptions that are location specific, but home ownership is the average Americans greatest wealth building tool.
