Quote:
Originally Posted by David70
Super high rates will cause prices to drop. Supply and demand. If you want/need to sell your house and nobody can afford it you will drop your price. It will never become a cash only market as almost no one can afford to do this and part of the ones that can don't want to.
Your theory is rates go to 10% and prices aren't affected?
I also don't think housing prices are at an all time high now (as an average across the country, maybe in your area it is different).
Attachment 3231840 |
High rates with a +5% increase vs 1.5 years ago has not significantly affected pricing at all... at least not in FL where I am. In fact, it hasn't really affected pricing at all. This may be true for certain overvalued coastal cities but not generally... and yes at 10%, very few people can afford to finance... only those with buckets of cash can purchase at these prices.