How is the spike in housing prices sustainable?

The current housing prices were pushed up by low rates over the last two years. Now rates will likely trend up.

You can tell me supply + demand all you want but it’s about 40% more expensive to buy vs this time last year. Everything else costs more and wages are not keeping up.

Take an overheated housing market. Add inflation. Add a recession. We just started it. Add corporate landlords backing off and even offloading some inventory.

We’re being told we’re “back to normal” but I’m looking at the spike in prices and I don’t see that not coming down significantly. Maybe not an all out crash but 10% by EOY seems reasonable depending on the market.

We’re looking at new construction. 2 months ago, no incentives. Now intriguing incentives but the house is still priced 15% higher vs last December when materials were way more expensive and rates were still super low.

submitted by /u/GSD_4_ever
[link] [comments]

The current housing prices were pushed up by low rates over the last two years. Now rates will likely trend up. You can tell me supply + demand all you want but it’s about 40% more expensive to buy vs this time last year. Everything else costs more and wages are not keeping up. Take an overheated housing market. Add inflation. Add a recession. We just started it. Add corporate landlords backing off and even offloading some inventory. We’re being told we’re “back to normal” but I’m looking at the spike in prices and I don’t see that not coming down significantly. Maybe not an all out crash but 10% by EOY seems reasonable depending on the market. We’re looking at new construction. 2 months ago, no incentives. Now intriguing incentives but the house is still priced 15% higher vs last December when materials were way more expensive and rates were still super low. submitted by /u/GSD_4_ever [link] [comments]

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