No. of Recommendations: 2
"This person with a 2% mortgage wants to sell, but most "buyers" have no desire to buy no matter what the rate. They are too busy being curled up in a sea of anxiety caused by the uncertainty that surrounds them."
IP, I know from TMF that you have a ton of experience in real estate, on both the buy side, and
the sell side ( as a realtor ). I'm seeing housing prices that are so disconnected with
what wages are, but this has been going on for awhile. But even as someone with assets, I
would have no interest in buying at these prices. But the caveat to that is that I already
own a nice house, so am not paying very high rental prices while trying to find something
to buy.
So I don't think lower mortgage rates are going to spur demand. But I admittedly do not
know the ins and outs of RE. Is the FOMO caused by paying high rents enough to keep
home prices rising from an already high level ? I understand supply and demand, so if enough new units are not being built, prices are going to rise, no matter what I think of the ability of the new buyers to carry these costs. With the so called "immigration policy" that has been unleashed, I don't think it's going to be immigrants buying housing in America, so perhaps that will provide a check on soaring prices.
Sure am glad I'm not a youngster looking to get a starter house.
