I’ve actually watched this play out in a couple smaller markets—when the big buyers pulled back, prices didn’t drop overnight. Sellers just dug in their heels and waited, hoping the “right” buyer would show up. Eventually, some had to get more realistic, but it took ages. I’m curious, though... if corporate buyers are out, do you think more mom-and-pop landlords would step in, or would we see more first-time buyers finally get a shot?
I’ve seen the same thing—when the big guys step back, it’s not like prices just tank overnight. Sellers hang on, hoping for a miracle, and it can drag out for months. Sometimes years.
If corporate buyers really do get pushed out, I doubt it’ll be a flood of mom-and-pop landlords swooping in. Most of those folks are already stretched thin with higher rates and tighter lending standards. Maybe a few will try to pick up a deal here or there, but I don’t see them replacing the volume the big funds were doing.
First-time buyers might get a better shot, but only if sellers finally accept reality and drop prices. That’s the real sticking point. People get anchored to what their neighbor sold for last year and don’t want to budge. I remember back in 2009, it took ages for prices to adjust in my area, even when investors disappeared.
Feels like we’re in for a long, slow grind rather than any sudden shift.
You’re spot on about how sticky sellers can be when it comes to price drops. It’s tough for folks to let go of those “peak” numbers, especially when they saw their neighbor cash out big last year. Here’s how I see it:
- Sellers tend to anchor hard on yesterday’s prices, and it really does slow things down. It’s more of a drip than a flood.
- Even if corporate buyers step back, the financing environment isn’t exactly rolling out the red carpet for small investors or first-timers. Higher rates and stricter lending mean fewer people can jump in.
- In my experience, these transitions are rarely dramatic. Back in 2011, I had clients frustrated for months waiting for prices to “correct,” but it was just a long, slow grind.
Still, a gradual shift can be positive. It gives buyers more time to plan, and sometimes you catch a motivated seller who’s finally ready to move on. Not exciting, but it’s a chance for patient folks to get in at a fairer price—eventually.
Sellers tend to anchor hard on yesterday’s prices, and it really does slow things down. It’s more of a drip than a flood.
That’s exactly what I’m seeing too. Even with talk of banning corporate buyers, I doubt it’ll trigger some huge price drop overnight. Sellers are stubborn, and most regular folks can’t just swoop in with rates where they are now. I refinanced last year and honestly, if I had to buy today, I’d be priced out. The “drip” is real—patience is key, but waiting for a fire sale is wishful thinking.
Sellers are stubborn, and most regular folks can’t just swoop in with rates where they are now.
I’m seeing that daily—people just holding firm on their numbers, even when buyers balk. It’s not just about corporate investors. Even if they’re banned, the math still doesn’t work for a lot of would-be buyers at these rates. Saw a listing sit for months, then the seller finally took it off the market instead of dropping the price. That kind of thing’s more common than people think.
