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Perhaps The Bay Area Is Overpriced -- Again
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2017 Nov 1, 3:08pm 1,951 views 2 comments
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Patrick
2017 Nov 1, 8:25pm
Yes, there is a limit to what people can pay, and interest rates are the biggest determinant of that.
The question is whether the Fed will keep rates artificially low forever.
Patrick
2017 Nov 1, 8:25pm
Home prices have to come down one way or another. I fear that if the economy starts to move forward more solidly, such as with increased personal incomes and then consumption, then the Federal Reserve will begin to tighten interest rate levels to stave off inflation. That keeps buyers out of the market simply because the increased interest rates will mean higher costs. But, at least - theoretically - home prices will come down.
Yes, there is a limit to what people can pay, and interest rates are the biggest determinant of that.
The question is whether the Fed will keep rates artificially low forever.
Charts showing housing prices. Author mention San Francisco and says it's an outlier.