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Anything from nothing to a small correction. Mortgage payments set a ceiling on how high property prices can rise. However, people seem to be willing to spend
by zhdc1 4y ago
Anything from nothing to a small correction.
Mortgage payments set a ceiling on how high property prices can rise. However, people seem to be willing to spend more on mortgage payments than they probably should, so it’s likely that this ceiling hadn’t been reached yet.
The other factor is simple
supply and demand. A large factor in 2008 was a large inventory of housing that came on the market. As far as I’m aware, there is no current corollary in the US now.
- toomuchtodo 4y agoI would like to qualify this. This is true in markets where labor is the majority purchasers. In markets like the sunbelt, where retirees are moving and buying properties with a combination of cash, previous real estate equity, and retirement assets, mortgage payments don’t restrict home prices. This crowds out anyone who does need financing to buy their home, especially as interest rates rise and inventory remains low.