Mar 1, 2021
4:34:02pm
4:34:02pm
This makes sense but historically rates go up because there is inflation which
means prices are increasing including houses. So while looking at things in isolation increasing rates should mean decreased housing prices but that is only one of many factors and not what happened in the past because we had high interest rates due to inflation. Real prices adjusted for inflation may decrease but it is unlikely nominal prices will decrease with increasing interest rates.
We did see real prices decrease with the housing crash but at that time we also saw rates decrease. Prices in the 70s with high interest rates saw high price appreciation. If we have a recession than prices may go down but it won't be because interest rates are high because high interest rates don't happen in a recession.
We did see real prices decrease with the housing crash but at that time we also saw rates decrease. Prices in the 70s with high interest rates saw high price appreciation. If we have a recession than prices may go down but it won't be because interest rates are high because high interest rates don't happen in a recession.
Originally posted on Mar 1, 2021 at 4:34:02pm
Message modified by johnnybyu on Mar 1, 2021 at 4:34:45pm
Message modified by johnnybyu on Mar 1, 2021 at 4:37:19pm
Message modified by johnnybyu on Mar 1, 2021 at 4:38:44pm
Message modified by johnnybyu on Mar 1, 2021 at 4:41:47pm
Message modified by johnnybyu on Mar 1, 2021 at 4:43:05pm
Message modified by johnnybyu on Mar 1, 2021 at 4:45:05pm
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Those are all factors, but the biggest factor is insanely low rates. Once rates go back up, demand for housing will
3/1/21 3:38pm
3/1/21 7:44pm
3/1/21 4:30pm
3/1/21 6:37pm
3/1/21 3:46pm
Also lots of kids and people that still like having kids. Internal growth projections were already strong
3/1/21 3:53pm
3/1/21 4:34pm