Housing Market Is Bad for Everyone(themakingofamillionaire.com)
themakingofamillionaire.com
Housing Market Is Bad for Everyone
https://themakingofamillionaire.com/housing-prices-tick-back-down-but-not-really-15d50c6bd065
2 comments
Based on average interest rates, the $900,000 house in 2020 would be significantly cheaper than the $795,000 house in 2023. Assuming both buyers put down 10% — a fairly average number, contrary to the popular belief that it’s 20 — the $900,000 house in 2020 would give a monthly payment of $3,952. The $795,000 house in 2023 comes out to a little over $5,000 monthly. That’s $12,000 a year more for a house that’s lost $105,000 in value. Bad for everyone .
The main exception is that it is better for short-term house owners or buyers with cash. These are not a majority of purchasers, but it is certainly not correct to distill it down to an absolute bad for everyone