Housing Prices and Rates
This cluster centers on debates about inflated housing prices driven by low interest rates, predictions of price corrections as rates rise, and factors like supply shortages, demand, and affordability.
Activity Over Time
Top Contributors
Keywords
Sample Comments
Home values are extremely inflated from the low interest rates. Credit became so cheap so people could “afford” much more expensive homes. As rates go back up, housing prices SHOULD fall. I worry they won’t though and people will no longer be able to own a home unless they are pretty wealthy.
"house values have little choice but to go up"[citation needed]
The truth is interest rates have quadrupled in last 2 years but home prices have only dropped 10-20%. That’s not much.There is very little supply at the moment, the population is still growing and the people with money are still buying houses they can afford.FWIW under Biden, the wealth gap increased the most, he added the most debt, the house prices have the biggest hike.For all things Democrats preach, it’s the exact opposite. Most people are worse off.
How else would you keep the house prices from skyrocketing /s
Home prices have dramatically exceeded inflation for a long time, so you're getting advice from people who reaped huge appreciation gains. Now housing prices are hitting affordability limits, interest rates are less appealing, so it's unclear if the future will look like the past.
Doesn't demand go up, as more people can afford a given house?
Housing prices are already being "inflated" by the low cost of mortgage debt. If interest rates climbed to something like 6-7% for a 30-year mortgage you'd see values drop.
People need to afford a house. If they can't do that they'll go do something else, pushing the price back up
That's relatively new. Housing prices over the last decade have gone way up.
Considering that historically housing prices have tracked inflation, it seems high to me.