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25 sats \ 4 replies \ @Undisciplined 27 Feb \ on: Real estate prices are rising: good news - the Fiat pump is working again econ
Something's off here. People increasingly can't afford the current home price and interest rate combination, houses have been sitting on the market longer than they had been, and commercial real estate looks like a disaster.
I still expect the housing market to collapse in the near future, but we'll see.
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Demand is the willingness and ability to pay for something. It doesn't really make sense to say demand is high despite an inability to pay.
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I agree with that, but I don't fully understand who it is that's buying all these homes.
If it's driven by flight out of NYC, LA, SF, or DC, then it makes sense to me. Selling a home there would give you plenty of money to buy a home in the growing mid-size metros. However, there should be a corresponding decline in the major metro housing markets.
My other thought, is that people may also be moving out of apartments in cities and into homes.
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