Rising interest rates don't typically signify lower home prices because rising interest rates are usually a biproduct of a hot economy that needs to be tempered. With the exception of 2008, home prices have almost never gone down. Now, it may be different this time. There is tons of speculation now and you are starting to see some sectors show big cracks. There was also a massive re-allocation of capital during the pandemic as people moved from high COL places to more reasonable locations(due to remote work), in turn making those new location high COL places.
My theory is that eventually the unemployment rate will start rising, and people who lose their jobs that just got a 600,000$ 2/1 will be in a pretty tight spot. It would lead to either cutting consumption in other parts of life, defaulting on the house, or selling for a loss. And so on and on...
My theory is that eventually the unemployment rate will start rising, and people who lose their jobs that just got a 600,000$ 2/1 will be in a pretty tight spot. It would lead to either cutting consumption in other parts of life, defaulting on the house, or selling for a loss. And so on and on...