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It’s wild to see the comments on this headline’s twitter post and elsewhere, the commenters are essentially disagreeing with the premise. It’s almost as though
by Flatcircle 4y ago
It’s wild to see the comments on this headline’s twitter post and elsewhere, the commenters are essentially disagreeing with the premise. It’s almost as though low interest rates for so long made people forget that housing doesn’t always go up. Truth is home prices can go down and sideways for many years in high interest rate environments. But perhaps some people don’t yet realize the new normal that’s coming down the pike.
- toomuchtodo 4y agoYour average person is unsophisticated with regards to macroeconomics and how interest rate policy impacts asset prices. Look no further than your local MLS with properties active 90+ days and the prices they’re asking. This is the “missed the market” cohort, and there is a long line of folks who are going to be exceptionally sad with the forward looking macro on both sides (stubborn sellers as well as recent buyers seeing an immediate decline or ongoing stagnation in their home price). I am not unsympathetic to those are recently bought and will see their home values and some of their equity decline, but artificially propped up values are unsustainable.
- postpawl 4y agoProperty that’s easy to rent is still selling pretty quickly. A 700k+ house in the suburbs might be a lot harder to sell right now, but a good condition 2 bed 2 bath in a good location in a major city will usually sell within a few days still.
- toomuchtodo 4y agoDo you know what the cap rates are on the investment properties you’re mentioning selling? Those investments have to compete against rising risk free returns.