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Home values are extremely inflated from the low interest rates. Credit became so cheap so people could “afford” much more expensive homes. As rates go back up,
by skellera 9y ago
Home values are extremely inflated from the low interest rates. Credit became so cheap so people could “afford” much more expensive homes. As rates go back up, housing prices SHOULD fall. I worry they won’t though and people will no longer be able to own a home unless they are pretty wealthy.
- onlyrealcuzzo 9y agoHouse prices are sticky. They easily go up when interest rates fall. But when interest rates rise, housing usually remains stubborn until the cycle collapses.
- jazzyk 9y agoIt did take 5-6 years, but prices in Spain fell ~40% off their highs reached in 2008