This article seems to miss so many points.
1. The monthly payment is fundamentally P*r with a small epsilon for principle reduction.
2. Interest rates wonβt stay up forever?
3. How long does an average homeowner stay in a house?
P can drop by 50% or βrβ can drop by 50%
βrβ was recently 2.5% and is now 6.5%
Maybe we need to look at r
Also property taxes are driving sales as much as βrβ
Infact property taxes in Illinois have the effect of doubling βrβ.
So in Illinois you could create massive wealth by suspending property taxes and dropping interest rates. A $500,000 house would easily be valued at more than $1,000,000.
A bear market helps more than a bull market hurts! - @Samuel
My new quote, adopted from aviation. #nostr π§ββοΈ(s) will know exactly where this comes from.
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