Quote:
Originally Posted by mvbird
If the Federal Reserve finally lowers (and continues to lower) interest rates in September, I think house prices may increase. If buyer's monthly financing costs are lower they qualify to buy at a higher price.
Another part of my argument is that money market rates will continue to sink, causing some to want to invest in real estate instead, hoping or renting, for a better return.
The other side of this argument is Villages house prices will remain the same because many buy Villages homes with cash, no financing, and they won't care.
Discussion ?
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Rates matter, sure. But the inventory here is through the roof. Until we work through that inventory (which is still trending upward), house values must fall. Painful medicine.