Home prices could drop 50% and would still be high.
We've had a shitload of inflation since 2008 but it's mostly manifested in real estate and stocks because those are markets with a more fixed supply. It was only after 2020 when they goosed the money supply by 40% that inflation started creeping into goods and services.
Spoke recently with a friend about it. Properties are currently more that double than they were in 2008 when the interest rates were at 6-7%. People can't afford paying these 6-7% because the monthly payment they pay for the same property would be double than 15 years ago.
Home prices have more than doubled in my area since I moved up here about ten years ago. Most locals have been priced out of the market entirely. Most buyers are coming from California.
The only good thing as that these Californians are mostly conservatives trying to escape to a red state.
Sane neighbors are an increasingly valuable amenity.
It’s crazier than that. We bought a house at about 3%. Since then, both the price of that house and the interest rate more than doubled.
