Ok let’s have a simple intellectual finance discussion. Which this article fails to do…
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 won’t stay up forever?
3. How long does an average homeowner stay in a house?
P can drop by 50% or “r” can drop by 50%
“r” 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 “r”
Infact property taxes in Illinois have the effect of doubling “r”.
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.
Yahoo Finance
US housing market poised to crash ‘worse than 2008,’ expert warns. And 50% plunge could start in 2026. Protect yourself
This time, she argues, large investors may not step in.
