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Who or what is the blame for higher gas prices since inauguration? If anything, I see prices of home going up because of inflation.
I think it is because of pent-up demand and because people who have been at home for a whole year, in many cases, have decided they want something different in life, whether it be a new location or a different type of house.
For much of the country, housing prices are locked to interest rates. Most people buy houses with 30 year fixed mortgages. They can’t borrow more than they can qualify for. Look at the 10 year treasury chart. It was below 1% for much of the last year. It’s up to 1.6% at the moment. The average over the last decade has been a historically low 3%. Housing prices have been fueled by cheap money. It can’t last forever.
The real estate wealthy people buy is different. With the rapid increase in wealth among the top 1%, rare property is going to continue to go up. Aspen isn’t going to get cheaper. Oceanfront on Martha’s Vineyard next to Obama isn’t going to get cheaper.
For much of the country, housing prices are locked to interest rates. Most people buy houses with 30 year fixed mortgages. They can’t borrow more than they can qualify for. Look at the 10 year treasury chart. It was below 1% for much of the last year. It’s up to 1.6% at the moment. The average over the last decade has been a historically low 3%. Housing prices have been fueled by cheap money. It can’t last forever.
The real estate wealthy people buy is different. With the rapid increase in wealth among the top 1%, rare property is going to continue to go up. Aspen isn’t going to get cheaper. Oceanfront on Martha’s Vineyard next to Obama isn’t going to get cheaper.
Rates and home prices are based on local economies until they get way high ..there really is no link to rates typically .
2007 saw houses booming at 6-7% ...real estate was booming here in ny when I bought first property in 1987 and I was thrilled to get 8-1/4% .
All that happens is the scale slides down a bit as people just buy less house .Rising rates tend to put pressure on homes in the mid to lower price range as demand kicks up and those on the fence go we better buy now before we can buy even less house .
The upper end is un effected as those with the resources just pay cash or just buy with a mortgage regardless.
There is no see saw effect though between rates and home prices. Local economy is the primary driver of prices
Okay so gas is going up and everything else will be too, so will housing prices go down? Homes will be less affordable with all the higher costs and these costs keep climbing!
Just wild speculation on my part but with only 11 houses for sale in my town of 12,000 people, I'm guessing the hated Biden economy will not drag home prices down here.
I live in a neighborhood with 1000+ homes and there is currently 1 house for sale that is not pending or under contract. That house is a $1m new construction that has yet to be finished.
If a house pops up, it's under contract within a few days and that's only because the owners are mulling over the offers that came in on day one. I've seen three houses recently that were listed as "coming soon", however the description listed that the sellers had already accepted offers sight unseen, but were accepting backup offers.
Okay so gas is going up and everything else will be too, so will housing prices go down? Homes will be less affordable with all the higher costs and these costs keep climbing!
Homes will be less affordable thanks to inflation.
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