When I graduated from the Naval Academy in 2007, there was a palpable feeling with regards to financial markets in the U.S. No matter your level of financial knowledge, and trust me in 2007 mine was low, you knew something big was on the horizon. And in fact, the general public was right.
I assume price decreases would depend on whether the number of sellers exceeds the number of buyers. In a new construction community, the builder has to sell all the houses right away, so prices will decrease a lot to attract marginally interested buyers.
Conversely, in a well-established community in a good school district where there are many upper middle class resident homeowners and few investors, there may be many potential buyers and few sellers. In that case, the buyers will have to "suck up the high mortgage rate" to get into that community.
Also, when deciding whether the mortgage rate is low or high, one should consider payment/income, not the rate by itself. At current rates, prices, and incomes, the payment/income is likely at a historic high point, even if interest rates are historically average. Thus, prices would have to significantly decrease in order for affordability to be "average."
I assume price decreases would depend on whether the number of sellers exceeds the number of buyers. In a new construction community, the builder has to sell all the houses right away, so prices will decrease a lot to attract marginally interested buyers.
Conversely, in a well-established community in a good school district where there are many upper middle class resident homeowners and few investors, there may be many potential buyers and few sellers. In that case, the buyers will have to "suck up the high mortgage rate" to get into that community.
Also, when deciding whether the mortgage rate is low or high, one should consider payment/income, not the rate by itself. At current rates, prices, and incomes, the payment/income is likely at a historic high point, even if interest rates are historically average. Thus, prices would have to significantly decrease in order for affordability to be "average."
nice coverage, thank you, keep it rocking, cheers!
P.S. complementary, we should see some pressure on the short-term https://mobile.twitter.com/Maverick_Equity/status/1597221472992649216