Then there's the constant upkeep and improvements which home refinancing and equity loans make possible. It's rare to hire anyone to do work on your home and spend less than $10,000. A new roof for mine would be over $24K. That's insane.
Tell me about that. We have been improvers, sellers and purchasers, in the past two years. First, a new roof on our primary home was estimated to cost $155,000 in east Oahu. Not the price of an asphalt tile, but concrete tile. There are homes in what used to be "reasonable" investments in Kapolei (west Oahu). These modest houses had Monier tile roofs. That company was purchased by another company, and zoom, up went the replacement costs. It is so expensive to replace tile roofs now that many of my neighbors put off the repair, and rely on a hurricane to entertain the project. I am not in a position to take a 100% hit for this replacement. It was cheaper to just replace 30 faulty tiles for $3000.
As for selling a property, that has been the most hellish experience since 2008. My wife took out a hard money loan on a condo. This bled close to $85K from our assets. She had no idea about how to smoothly complete the fixups needed to put the property on the market. She had one buyer who needed to obtain a VA loan in 2025. This took nearly two months to complete. The gubmint surprisingly approved the required loan amount, which allowed the wife to avoid defaulting on her hard money loan. I have no idea about the future of the VA loan process, with or without DOGE meddling. If you are a veteran and need to buy a home, good luck before the market collapses.
The third thing we did in the past two years was buying a home for one of our Ohana. If an individual or family has to go through the hoops to obtain a loan in this time frame, it will be worse than getting a root canal, heart transplant, and brain surgery. Most old homes have undocumented improvements, and while lenders seem to ignore these features, the Department of Planning and Permits could make your life hellish, in the future.
Real estate investment in 2025 will be a challenge. This youtube video is one of the pessimistic views of the housing market.