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I don't know why you think home prices will go down if interest rates go up. they might not. especially in cities where everyone wants to go and where offer is
by fredestine 5y ago
I don't know why you think home prices will go down if interest rates go up. they might not. especially in cities where everyone wants to go and where offer is low.
- imtringued 5y agoOne of the things I am wondering about is how I have found housing that is not affordable to a single working adult but once you have two incomes the price is perfectly reasonable. My hypothesis is that if there is a shortage of housing, then dual income households will bid the price up and this causes the appearance of unaffordable housing when the underlying cause is that there is a shortage. This effect does not happen when there is a housing surplus.
- thehappypm 5y agoSupply and demand would indicate that higher interest rates would reduce demand. However.. demand is not ONLY driven by average cost. For people to straight-up not want to buy homes anymore would mean they'd need to move, or switch to renting. Prices may fall but I don't think they'd fall in lockstep with interest rates.