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I don’t think they’ll outbid you, they’ll buy a more expensive house.
by malvosenior 8y ago
I don’t think they’ll outbid you, they’ll buy a more expensive house.
- mamon 8y agoAnd you think you'll be able to find a cheaper house? No, sorry: sellers will raise their asking price to match (or exceed) the market average. So, your choice really is between paying the same price as everybody else or not buy a house at all.
- malvosenior 8y agoEvery house does not cost the same amount. Yes, the average price might go up, but in my experience people will buy the biggest house they can afford instead of over bidding on a smaller house (in most markets).
- tonyedgecombe 8y agoThey will when supply is constrained.
- malvosenior 8y agoI think this is a minority of real estate markets (mainly SF and Vancouver). Even in NY there's enough of a spread that someone making 250k a year will have the option of buying a house under their max buying potential.
- AnthonyMouse 8y ago> They will when supply is constrained. The point of the article is supposed to be that the issue isn't supply constraints. If interest rates only raise prices significantly when supply can't respond to higher demand, how is the problem interest rates rather than supply constraints?
- deleted 8y ago[deleted]