Monthly payment matters, not necessarily the price. With interest rates this low

Mar 31, 2021
10:44:04pm

Backcountry All-American

Housing isnt terribly expensive relative to wages. And most people dont think interest rates will rise withing the next few years.

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Backcountry

Previous username: The Lone Wolf
New username: Simple Jack
Bio page: Backcountry
Joined: Sep 6, 2008
Last login: Aug 8, 2023
Total posts: 0 (0 FO)

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Messages

Author

Time

Why home prices will probably abate soon enough

grosven

3/31/21 10:31pm

I have to believe a major correction will happen when evictions resume.

shoganai

3/31/21 10:33pm

Are we referring to foreclosures here?

Parkercoug82

3/31/21 10:34pm

I'm assuming rental evictions will have some effect, as well.

shoganai

3/31/21 10:35pm

How so? So a bunch of people get evicted and then what? Where do they go?

brazilcoug

3/31/21 10:45pm

They reenter the market as low income, high risk tenants.

shoganai

3/31/21 10:50pm

Yeah, but how does that hurt the market?

brazilcoug

3/31/21 10:53pm

I would assume a sudden rush in low-income demand would create downward pressure

shoganai

3/31/21 10:56pm

In the case of Vegas, tons of people living here rent free despite record

Jericho

3/31/21 11:45pm

This has been occurring in the CA real estate market for a few decades.

BringBackRoyalBlue

3/31/21 10:34pm

Once families decide to live multi-generational under the same roof, it

Jstak17

3/31/21 10:40pm

Either that or with new minimum wage and inflation

cougarfann888

3/31/21 10:35pm

Rising interest rates will halt the rise.

BostonCougar

3/31/21 10:37pm

Coupled with, purchasing power mean reversion, the effect could be significant.

grosven

3/31/21 10:46pm

It’s a mix of low interest rates left over from Trump mixed with stimulus money

cougarblue

3/31/21 10:39pm

Um...yes....interest rates have been to low

byukarl

3/31/21 10:41pm

Monthly payment matters, not necessarily the price. With interest rates this low

Backcountry

3/31/21 10:44pm

Be very interesting as inflation ticks up. Pressure will build to increase

Jstak17

3/31/21 10:47pm

I agree. This is a fascinating time. Central banks and the government have

Backcountry

3/31/21 10:53pm

In general, what is the best thing we can do to protect us from Real inflation?

JohnnyC

3/31/21 11:01pm

Eliminate debt and invest in inflation hedges.

shoganai

3/31/21 11:13pm

Eliminating debt doesn’t make sense with inflation right?

kotacoug

4/1/21 1:17am

Is it fixed rate or variable? If fixed, then keep it. If variable, convert to

BostonCougar

4/1/21 1:23am

Only makes sense if the interest rate is higher tgan inflation.pay off credit

Backcountry

4/1/21 8:07am

Honestly, I'd love to know myself. I've committed hours every day for the last

Backcountry

3/31/21 11:18pm

IMO, Best to cover all bases if you can. Consider it as insurance 4 the unknown.

grandpacoug

4/1/21 9:20am

Appreciation will slow, but housing prices will not decrease. Loan standards are

valleus

3/31/21 11:28pm

Honestly, this seems like the likeliest story here-- a tale of two types of

jkccoug

3/31/21 11:32pm

Why worry? Last time this happened it turned out fine . . .

jkccoug

3/31/21 11:31pm

Tell this to Europe... We might see a small correction, but I doubt it. Not with millions coming in as well.

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