“What’s The Issue? Home Prices or Interest Rates?”
Posted by Roxanne DeBerry on
Some would say both. There is some truth to that, however, what has gone up the most? Home Prices! Traditionally home prices escalated around 4 to 6% annually. What we saw during the pandemic is home prices skyrocketing up, in some cases, 24% or more. No matter what the interest rates this is a huge increase. At one time, when interest rates up 18% or more, this was a big issue but homes were still selling. Why? The average home prices were at a level that these homes continued to be affordable.
The old saying really applies to this situation, “what comes first, the chicken or the egg?” Today’s case is home prices. It doesn’t matter what the interest rates are or at least doesn’t matter as much when home prices are affordable. Where do we go from here…
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