What Causes the Housing Market to Go Up and Down

Why are house prices still going up and how to look at the housing market. What will happen when interest rates drop to 7%, 6%, or if rates go up to 10%, or change in general?
Supply and Demand curves.
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Topics discussed may include predictions, estimates or other information that might be considered forward-looking and results are not guaranteed. Prior performance does not guarantee future performance. This is not individual investment, legal, or tax advice. Investments carry risk and can lose value. Make sure to complete your own due diligence and work with licensed investment, tax, and accountant professionals when making financial decisions. Topics discussed and opinions provided do not represent any current or past employers of Financial Freedom 101 staff and are given as personal opinions. Financial Freedom 101 is not responsible for any of the financial decisions that you make. Financial Freedom 101 typically has investments including, but not limited to positions in diversified ETFs and mutual funds such as SPY, VOO, SWPPX, FXAIX and others which may contain holdings in the companies discussed. The content of this video is for entertainment purposes only.

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[@bombasticlove76]

People dont understand that the prices of things are never going back down. This inflation is deeper than we think. Those buying groceries are well aware that the real inflation is much over 10%. The increments dont match our income, yet certain investors still earn over $365,000 in stocks and assets. Wish I could accomplish that.

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Brian demonstrates an excellent understanding of market trends, making well informed decisions that leads to consistent profit

[@davidfolts5893]

Unintended consequences of cheap money and low interest rates caught up to reversion to the mean.

[@Gangsterlife333]

Say a home is 400k and they drop interest rates. How much would that house go up by in today’s market if you had to guess

[@financial_freedom101]

For each 1% drop in interest rate there has historically been around a 10% increase in home prices. With current interest rates on a 30 year mortgage around 7-7.5% if the interest drops to 6-6.5% the price would go up to 440K for a 400K home (10%) or if interest drops to 5-5.5% price would go up to $480K-485K. Real estate is local and this is assuming stable dollar value and stable area. Inflation will further increase the price by another 2-4% per year. An area with more crime etc. may see a decrease in prices as no one wants to buy a house if they will get shot etc.
It is best to work with a local licensed agent when buying a home.
All the legal disclaimers: All investments carry risk and can lose value. Prior performance does not guarantee future performance.