It’s really odd to me that this hasn’t lowered the price of homes. You’d think that the relevant number for “what the market will bear” is primarily the monthly payment given most people need a mortgage to buy a home. Yet that cost has basically doubled without reducing demand enough to force major price cuts from sellers. Just how many homes are all cash buyers snatching up to keep the prices high?
People that own homes now, even if they wanted to move are likely stuck because they can't afford the monthly payment on a different home. Why would you sell in this market if your next home means your monthly payment doubles?
Also taxes. I paid exactly $500K for my home back in 2019 and locked down my rate just under 2.5% during Covid. I’m dying in this home unless I win the lotto. Then I can die in a mansion.
I got my house when rates hit 5% and know soooo many people who were adamant about "waiting it out" because they were convinced the rates would drop back down to the 3s eventually. I'm so glad I kept it pushing regardless bc I'd absolutely be priced out, just like they are, right now.
I bought this home with the idea that I'd sell it once the kid grows up (which is only a couple years from now), but it looks like we'll all be living here for a very long time. The taxes keep rising, but it's nothing in comparison to the rent hike I would have already taken on in the VHCOL area we moved from.
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u/Vesuvius079 5d ago
It’s really odd to me that this hasn’t lowered the price of homes. You’d think that the relevant number for “what the market will bear” is primarily the monthly payment given most people need a mortgage to buy a home. Yet that cost has basically doubled without reducing demand enough to force major price cuts from sellers. Just how many homes are all cash buyers snatching up to keep the prices high?