[agloe_dreams]

I would say, even further, here in the rust belt there is a whole other problem:

Inventory is gone. Not low. Gone. In the 45 mile radius we are looking in for an area with a pop of ~100,000, at houses under $350k (90% of listings)...there are weeks with ZERO listings.

This has lead to an insane situation where offers end up way over asking but there are so few comps that virtually all FHA is back out, not because of issues with the offer but because the appraisal issue: no house actually apprises near the price it goes for.

If you take a look at Zillow, most houses that sold last in 2019 after a renovation, with zero changes since, are listing at $330k. This has crunched the rental market as one would expect. Rental prices, in absolutely a low cost of living area have multiplied overnight from ~$700 to $1500+. I know most in this area are absolutely not paid like us so I'm pretty sure the area is about to hit a wall. One might expect a market to limit itself as homes that cost too much wont sell..but the other side of it is that I think we are getting to a flexible point of 'well everyone needs a home', I mean...is this a housing bubble coming? When that bubble pops, what happens to all the people with $350K loans on houses that are back down $200K?

[gautamdivgi]

I think that’s the downside of raising interest rates. Obviously I’m no economist, but if rates are high and I’ve already got a home I will not move. If people don’t move inventory is low and needs to be built. High interest rates probably put a crimp on new buildout. Just my thoughts.

[sangnoir]

Homeowners sometimes die, get divorced or have to move to a different area. Number of sales will go down, but not to zero. The prices of those sold due to exigencies will drop because of inflation.