I think we'll see a bunch of people refinance, which will lock even more people into their current homes. The flood is only going to happen if there are places for people to move because people still need a house. That's the problem with housing prices, then really only move quickly down if there is either a rapid increase in supply overall or there is some economic event that causes lots of people to sell their houses but not buy new ones.

Stop kidding yourself. Prices will continue to rise as more buyers become available. Lower interest rates means more buyers and that means more competition.

Sure, OP. Whatever makes you feel better.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:The thinking is that rates will go down and so many people will then be comfortable selling that they'll flood the market and prices will go down.

I don't think so. Those people won't be selling their homes at a discount.

This the market will be flooded.

This is going to be a fun thread to revisit in a few.

Agreed. Lots of cope in this thread and even more in the future when rates soften to the low 5s - "Where's the inventory?!?!?!"

Hint: it's still locked up in sub-3% mortgages.

Anonymous wrote:

Anonymous wrote:The thinking is that rates will go down and so many people will then be comfortable selling that they'll flood the market and prices will go down.

I don't think so. Those people won't be selling their homes at a discount.

This the market will be flooded.

This is going to be a fun thread to revisit in a few.

High interest rates in the past didn't stop prices from going up.

Don't think we'll see any meaningful price drops. There's no crash waiting to happen. But inflation catching up with house prices is something that can/will happen.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Rates go down prices will continue to go up but higher and faster

That's certainly possible and maybe likely. But I also think we could see a big influx of listings by people who haven't wanted to sell due to their low interest rate. Whether that supply could possibly outpace demand - I don't know.

There wasn't enough supply before when rates were low and prices had already jumped significantly. There were literal lines to to get into open houses. Prices are not going to go down lol

no where did I say they would go down - I was saying it was possible they won't go up "higher and faster"

I am with the higher and faster poster. There is so much pent up demand. Every year that passes more households are ready to buy but can't because of interest rates. It's snowballing. Sure more people will sell, but many if not most will also want to buy something else so it won't increase net supply by much.