4 ms·
Sure, I can see that. Without not knowing their argument, I can see the following pressures on sustaining current price levels: 1. Investor money swooping up p
by cbayram 8y ago
Sure, I can see that. Without not knowing their argument, I can see the following pressures on sustaining current price levels:
1. Investor money swooping up property for rental purposes.
2. Home owners refraining from selling in a buyers’ market. As long as they are able to make payments on their leveraged debt.
But there is no denying that higher interest rates put a downward pressure on home prices due to debt being more expensive and investment money finding more promising returns elsewhere; i.e. bonds.
Some other downward pressures I could see impacting housing markets are:
1. Lack of wage increases
2.Baby boomers dumping homes on the market over the next decade
3. Insolvent municipal/state public pensions. Money on these IOUs gotta come from somewhere. Bonds and cuts are one way, raising taxes is another.