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No it hasn't become more expensive due to hitting 5%, though it may be more expensive for other reasons. The market will equilabrate. There's a couple who liv
by ldiracdelta 5y ago
No it hasn't become more expensive due to hitting 5%, though it may be more expensive for other reasons. The market will equilabrate.
There's a couple who live at the peak of the bell curve that defines your market. They can spend $X,000 per month on a house. 2.5% vs 5% just changes how much of their money goes to paying down principle vs the interest. With that the price of the house will fluctuate to account for this reality.
- tallclair 5y agoThis doesn’t account for all the people who can afford to pay in cash. That will shift the equilibrium.
- ivanche 5y agoI don’t have hard data on this; however, I believe that cash buyers are minority, maybe even significant minority. It would be awesome if someone could share concrete numbers on this.
- beembeem 5y agoA local realtor in my hot market on the west coast indicated to me that it was as much as a third of sales they saw in the last year FWIW.
- dariusj18 5y agoThat's partially because there is a whole new industry of preapproved loans that you can treat as cash when negotiating to buy a home.