Housing Prices Tick Back Down

We’ve now entered the “bad for everyone” stage of the housing market. Well, almost everyone. More on that in a moment. But for now, our existing owners, prospective buyers, and renters are all experiencing some form of suffering when it comes to housing. Given that those groups make up the majority of the population that’s…not great. Rental prices remain sky-high in Canada, the UK, and the United States, sticking about a third of each population with borderline insufferable costs. Coupled with “first, last, and down payment” requirements, the new rental prices essentially make moving into an apartment the equivalent of a small house down payment. Of course, if renters had a small down payment just hanging around, many wouldn’t be renting in the first place. Prospective buyers, on the other hand, <a href="https://ycharts.com/indicators/30_year_mortgage_rate" rel="noopener ugc nofollow" target="_blank">have seen interest rates soar</a>, and their would-be mortgage payments rise accordingly. Even those who’ve been saddled with a disproportionate (but still rightly earned) share of the blame for the housing crisis — investors — <a href="https://www.realtrends.com/articles/investor-home-purchases-fell-by-nearly-50-in-q4-2022/#:~:text=Investors%20are%20buying%20fewer%20homes,investor%20purchases%20slumped%20by%2045.1%25." rel="noopener ugc nofollow" target="_blank">have backed off the market in record numbers</a>, leading to further weakened demand. Since everyone was so justifiably worried about the housing affordability crisis, we should be applauding these developments, right? Not that simple, unfortunately. While it is possible that investors pulling their funds out of the buyer pool and middle-class homebuyers being priced out of it could lead to demand and price collapse, that isn’t necessarily a dream scenario. <a href="https://themakingofamillionaire.com/housing-prices-tick-back-down-but-not-really-15d50c6bd065">Website</a>

Housing Prices Tick Back Down — But Not Really