They never ask the right questions. Why are home prices so high? Because the supply is much lower than demand. Why is the supply so low? Because new homes cost a lot in materials, labor and red tape to build and they are being built way outside of “town” where there is land to build them slightly more affordably; and because there is little incentive for people to sell their existing home with their low (or no) mortgage rate and lower property taxes and to trade it for a higher mortgage rate and/or a higher property tax valuation.
Interest rates are a part of it but the bigger problem is socio-structural. If rates dropped back to under 4% home prices would only go up as demand would increase but the incentive to sell existing homes would still be next to non-existent due to property taxes being assessed on the purchase price of a much more expensive home. There is no cure for this problem on the horizon. We need a radical shift on policy on many fronts.
” There is no cure for this problem on the horizon.”
Actually there is, reverse the Chevron decision
so Democrat union government employees aren’t making obnoxious regulations anymore and quit electing Democrats that allow those unions that much regulatory power.
problem will melt away.
The US housing market is a vast place that allows easy transactions compared to other places around the world. Fleeing individuals find it a option to park money.
This is another reason why gen x, y, z, are competing against such buyers and find it difficult to locate homes at a affordable price.