patrick.net

robertoaribas says

I expect sales to slow down, but prices to still keep increasing slowly over the next few years.

The prices always increase when the cost of borrowing goes up. Oh, wait....

Oil Can says

robertoaribas says

I expect sales to slow down, but prices to still keep increasing slowly over the next few years.

The prices always increase when the cost of borrowing goes up. Oh, wait....

That is the trend actually. Interest rates don't increase in a vacuum.

"In regions particularly hard hit by the housing bust, including California, Florida, Arizona and Nevada, "there has been a negative equity feedback loop, as regions with high negative equity have experienced acute inventory shortages brought on in part by locked-in underwater homeowners, and these shortages in turn have produced home value appreciation spikes, which have been reducing negative equity at a fast pace," according to Zillow."

It's pretty comedic to see these things happen with a detached interest.

I think this is probably pretty common in the ranges of 250-400k prices. Shortages are in the lower price ranges (100-200k), because anyone with a pulse can get a loan again, or rates are so low, people can even afford to fix up the place. Anything less than 100k just keeps getting flipped until the price is over 100k and someone finally gets stuck with it. I know prices can be different in other areas, that's just what it's like where I live.