Originally Posted by
Valar Morghulis
A lot of people complaining about interest rates. 7% is close to the historical norm. The ultra low rates in the ‘10s were an anomaly due to an economy that has weakness in the fundamentals. That finally caught up to us.
Money costs money. Retail money costs more.
The problem is that these low rates dramatically inflated the values of the home and now that rates have gone up, the home prices are not dropping. A house I looked at in 2011, based on inflation, should be selling right around $125k. However, iit recently sold for $230k, with no real change since I looked at it. To make matters worse, insurance in increasing at a greater percentage, as are tax valuations. They auditors office just raise my tax valuation by 50% to over $100k more than I could dream of get for a selling price. Some of my friends had theirs raise by 65%.