So interest rates go up and housing prices go down...I never understood the buyer's market/seller's market terms. If I was going to buy a house, I could get it cheaper, but then my interest rate would be higher. If I was going to sell, I am going to lose out, but not if I am buying another house, is that it? So if I am selling and then buying, I should break even, correct? On the other hand, if I am retiring to my already paid for retirement home after I sell (which is definitely just imaginary), I basically am a loser on the sale of my previous home. Also, if I was independently wealthy (which is really imaginery), I could pay cash for a great house right now because the prices are low. I think I may have finally grasped the concept. It really does help talking it out. Thanks.
It is all about supply and demand. When interest rates are low, it prompts people to buy regardless of the price of the house. When interest rates rise, people stop buying which prompts the sellers to lower their asking prices. All I know is that last year and the year before, when my husband and I were looking for a new house, we were disgusted by the homes and the asking prices. I will really look forward to the prices coming way down in the next year...hopefully..
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So interest rates go up and housing prices go down...I never understood the buyer's market/seller's market terms. If I was going to buy a house, I could get it cheaper, but then my interest rate would be higher. If I was going to sell, I am going to lose out, but not if I am buying another house, is that it? So if I am selling and then buying, I should break even, correct? On the other hand, if I am retiring to my already paid for retirement home after I sell (which is definitely just imaginary), I basically am a loser on the sale of my previous home. Also, if I was independently wealthy (which is really imaginery), I could pay cash for a great house right now because the prices are low. I think I may have finally grasped the concept. It really does help talking it out. Thanks.
It is all about supply and demand. When interest rates are low, it prompts people to buy regardless of the price of the house. When interest rates rise, people stop buying which prompts the sellers to lower their asking prices. All I know is that last year and the year before, when my husband and I were looking for a new house, we were disgusted by the homes and the asking prices. I will really look forward to the prices coming way down in the next year...hopefully..
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