Bought my house in 2006 for 196k. In 2012 it was worth 60-70k. In 2019 I tried to refinance, it appraised at 149k, so I couldn't refinance, still upside down. I sold it in 2022 when I moved for a job, for 167k. Today the house is roughly worth 250k, but that's after a major remodel (new kitchen, bedroom addition, new floors, drywall and more). When adjusted for inflation 196k in 2006 would be 303k. So while houses do tend to trend upward, they don't always put you out ahead. As of November, homes are the most unaffordable since the 1980s. Prices are too high for average person to afford them. I don't think we're going to see 2% mortgages anytime soon, especially with our current government's out of control spending and printing money like there's no tomorrow. While I don't think it's going to crash like 2008, buyers are limited mostly to people who already have equity in a home because the prices are higher than median incomes in most areas. An no one is going to sell their home with 2.5% mortgage rate for one with 6.5%
Bought my house in 2006 for 196k. In 2012 it was worth 60-70k. In 2019 I tried to refinance, it appraised at 149k, so I couldn't refinance, still upside down. I sold it in 2022 when I moved for a job, for 167k. Today the house is roughly worth 250k, but that's after a major remodel (new kitchen, bedroom addition, new floors, drywall and more). When adjusted for inflation 196k in 2006 would be 303k. So while houses do tend to trend upward, they don't always put you out ahead.
As of November, homes are the most unaffordable since the 1980s. Prices are too high for average person to afford them. I don't think we're going to see 2% mortgages anytime soon, especially with our current government's out of control spending and printing money like there's no tomorrow. While I don't think it's going to crash like 2008, buyers are limited mostly to people who already have equity in a home because the prices are higher than median incomes in most areas. An no one is going to sell their home with 2.5% mortgage rate for one with 6.5%
Great comment! Thank you
So.. any increase in buying power will be absorbed by price increases..great.
Potentially, yes. I'm not anticipating massive price increases though, so it may be a non-issue.