I believe it was Steve Cortez on the War Room that predicted housing prices would not collapse with the higher interest rates. So far he has been right. If he stays right that means housing prices will just continue to go up, up, up in cost. The average home mortgage payment for a typical sale in February 2023 is much higher than 12 months ago. And rents will just keep moving higher too I suppose.
Be aware those that get out in time by selling and taking their equity or from price bloat, they need to take that equity and purchase other real estate.
But wherever home sellers take their equity, they can face the same dilemma.
As we speak, hundreds of thousands are fleeing California and other high priced states. They go to other lower cost states and drive up local prices,
“housing prices would not collapse with the higher interest rates.”
The market just gets restricted to established house owners selling and buying.
Another factor is banks such as mine not offering long-term CDs of a term greater than 36 months. If the banks don’t think rates will remain at least 4%, many prospective house buyers and sellers will just wait say 37 months.
There is still a shortage of housing in almost all places in the country.
The exceptions are Nashville, Austin, Boise, all of CA except LA, Seattle and a few other metro areas.
Almost all the NE and midwest has no inventory of existing homes. However, housing starts are mostly in the southern US.
The metro areas with the largest number of housing starts(single family and multi family) are in order Dallas/Ft Worth, Houston, NYC, Phoenix, Atlanta and Austin.
Texas had about 20% of the total housing starts in the country in 2022.