Home prices will drop when rates go down

[Hitman]

1 hour ago, krishnaaa said:

Where will people come from to live in those rental units?

Americans who cant afford to own a house.

middle class no longer can afford to own a home. They will rent these homes

[krishnaaa]

9 minutes ago, Hitman said:

Americans who can afford to own a house.

middle class no longer can afford to own a home. They will rent these homes

American middle class has been shrinking.

 

When did the middle class start shrinking in America?

The middle class, once the economic stratum of a clear majority of American adults, has steadily contracted in the past five decades. The share of adults who live in middle-class households fell from 61% in 1971 to 50% in 2021, according to a new Pew Research Center analysis of government data.

[pakeer_saab]

51 minutes ago, Hitman said:

1 lakh desis holding cash to buy 2-3 rental properties 

2 lakh desis holding cash to buy 1-2 rental properties 

5 lakh desis holding cash to buy house for living on their own 

Total 10 lakh houses ki Immediate requirement undi 

 

100 lakhs are ready to come as students and buy homes miss ayyavu

[Vikkask]

Interest perigina home prices paduthayi. Interest rates thaggina home prices paduthayi. Bagundi anna chaala bagundi

[Konebhar6]

5 hours ago, krishnaaa said:

Due to home builders getting cheaper loans to construct more houses.

And investors selling extra houses that are lossmaking. 

 

This would lead to higher inventory. Agree?

Fed will start reducing rates only when they achieve what they want which is housing and rental markets down along with inflation. 

In the process we will see stock markets being corrected, financial institutions collapse and what not. 

Lets see what happens. 

[krishnaaa]

16 hours ago, Vikkask said:

Interest perigina home prices paduthayi. Interest rates thaggina home prices paduthayi. Bagundi anna chaala bagundi

Every scenario is different 

[krishnaaa]

On 8/24/2023 at 8:51 AM, Kootami said:

rates go down --- demand increases --> prices go up.

Since 1950 , except for one time when there was a very slight increase......every time home prices dropped when rates were cut after hiking cycle.

Understand the scenario that we are in.