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Originally Posted by G35POPPEDMYCHERRY
any thoughts as to why housing prices are increasing or staying the same after the price hikes even with interest rates rising...isn't it supposed to decrease? also what happens when things normalize and everyone is upside down...also any ideas or trends to why this housing market and rent is so expensive and holding
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Housing prices are up in some, but definitely not all, markets because of a lack of supply. Closing prices likely have softened even if listing prices have held.
Rents are numerous factors. Risk of non-payment increased in the pandemic and hasn’t materially declined (policy issue, not a change in willingness or ability to pay), higher interest rates imply higher rents to get an adequate ROI as a property owner - or the price of the rental units will decline. Supply remains a problem in some markets, and high housing prices have pushed more people to rent (plus fear of paying too much), increasing demand.
Lots of moving parts and variability around the country on this topic.