3 ms·
> The people benefitting from the status quo are only those who make money off trading and borrowing fees (banks, realtors), and the occasional person who left
by ytdytvhxgydvhh 3y ago
> The people benefitting from the status quo are only those who make money off trading and borrowing fees (banks, realtors), and the occasional person who left a high price area to a low price area.
I think that second category should also include retirees who downsize from their empty nest SFH to a cheaper, smaller condo, which is something that I think happens way more than occasionally.
- glimshe 3y agoThese people don't benefit so much from the high interest rates because they sell at high prices and buy at high prices too. Just check how much condos are going for in desirable areas in Florida.
- fragmede 3y agoA retiree with an empty nest SFH, looking at inflation and the rising cost of goods, and the future of living on a fixed income, might choose to cash out their equity with a HELC, use that to buy the smaller cheaper condo, and rent out their SFH instead. More work, but more money, and hey, you're retired, what else are you going to do? End result is, no new SFH on the market.