For most people, Home is a long-term monthly expense. All that really matters is the monthly cost, most directly a combination of sale price and interest rates

For most people, Home is a long-term monthly expense. All that really matters is the monthly cost, most directly a combination of sale price and interest rates (with consumables like gas, water, and electric playing a smaller role. Interest rates and sale price are pretty closely tied together. As interest goes down, people can pay more for the sale price. The sellers in the market realize that and raise their asking price. After all, if you could afford a $350k house at 5% interest, you could afford that same house at $500k with 2% interest (numbers aren’t correct, just an example). That exactly what happened over the recent past. Now interest rates are rising, so people can’t afford the same amount of house they could two years ago. This is compounded by the fact that many people are sitting on low interest loans. Unless they’re forced to sell, they’re not going to.