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Except that in areas where people actually live, higher rates haven't done much to lower those "low rate" prices. There is an insane supply problem and the fed
by Workaccount2 3y ago
Except that in areas where people actually live, higher rates haven't done much to lower those "low rate" prices.
There is an insane supply problem and the fed's hand in the mortgage market doesn't make anything better. It's sensible for mortgages to all be ARMs, then rates will actually have a very real and unavoidable impact on home values.
We are now going to be stuck with this before covid and after covid homeowner situation. People who bought prior to 2022, and especially prior to 2020 will be death gripping their 2% mortgage, to the point that you could basically write off that parcel of land as even existing for the next 20-25 years.
- zpeti 3y agoThat takes years to play out. Also, except for Miami every major city has had price decreases, so your personal anecdote is not what the stats show. And in fact, at 10% inflation, if prices don’t rise, that means they are getting 10% cheaper in real terms. So in fact prices definitely are falling, no city has had a 10% price rise in the last 12-18 months.
- Workaccount2 3y ago"Haven't done much" refers to reversing the price increases seen during low rates. Prices ran 20-30% in major markets and now getting pull backs of a few percent, mostly on the back of totally choked supply. Raise rates all you want, if there aren't houses being put on the market, it's not going to do shit.
- zpeti 3y agoThere are plenty of houses being put on the market, just not in super trendy blue metropolitan areas.
- nebula8804 3y agoby living in the hood or in MAGA country you are paying the same price, its just taken out of your wealth in different ways. The market is pricing things appropriately.
- zpeti 3y agoSpoken like a true liberal elite.
- nebula8804 3y agoThere is something that is scaring people away from living in those areas. the market does not care about your political views. You can deny reality all you want.
- deleted 3y ago[deleted]