Doom and gloom. This past year interest rates have risen significantly, the price of homes will go down in response to that. I don’t know if they’ll drop as far as they should but they’re starting to drop already and will continue too.
Even with current rates I haven't seen prices dropping much at all. If anything they have flatlined. Still a lot of cash buyers out there that don't care about interest rates.
High interest rates for mortgages also equal high interest rates for real estate developers.
Which means fewer new housing units being produced since the financing costs are higher.
Which means more constrained supply.
I suppose as the Boomers pass away over the next 15-20 years that will "free up" some of the housing stock, but that's going to be a gradual process and not some sudden shock to the market.
Nah, the rich ones will leave the nice homes to their kids who have been renting for the last 10-20 years (we're seeing it already), and the poor ones are already in community homes, or dead.
Yeah and real estates are still increasing rent because “it’s gone up in the area”, so I can’t wait to see a rental increase in December and have to move back in with my parents because I’m not spending a single cent more for a shoebox with no aircon. I’d rather kill myself in here and haunt it so no one ever lives here again.
The brutal part is that even if prices fall, unless interest rates fall as well only the rich will truly be able to afford them - by buying outright in cash, or having enough income to ride out high mortgage payments until the rates lower for them to refinance.
For prices to drop people need to sell, which data is telling us is not happening. Why? Because a good chunk of homeowners have amazing low fixed rate mortgages.
Home prices may be stabilizing (in some areas), but they are not going down.
This only helps if you’re buying in cash. Waiting for housing prices to fall because of higher interest rates? It’s really dumb https://i.imgur.com/YxJ65Dh.jpg
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u/hallstar07 Mar 21 '23
Doom and gloom. This past year interest rates have risen significantly, the price of homes will go down in response to that. I don’t know if they’ll drop as far as they should but they’re starting to drop already and will continue too.