home priced have increased for sure over the past 2-3 years,
House prices have been going up faster than wages for a lot longer than that. There was a lot of talk about how unaffordable housing was when the pandemic struck. Then, central banks globally plunged interest rates to practically zero. So money got really cheap for a while and loads of people jacked up their house prices even more.
high interest rates, which adds hundreds to monthly mortgage payments but which is a temporary situation.
They’ll come down, yes. But I very much doubt they’ll drop as low as before the pandemic. Rates had dropped in 08 after the credit crunch and a lot of central banks had never returned their base rates to their historical average. In my country the central bank had announced a plan in about 2018 to gradually raise the base rate from around 1% to I think it was 4% over the following 5 years.
House prices have been going up faster than wages for a lot longer than that. There was a lot of talk about how unaffordable housing was when the pandemic struck. Then, central banks globally plunged interest rates to practically zero. So money got really cheap for a while and loads of people jacked up their house prices even more.
They’ll come down, yes. But I very much doubt they’ll drop as low as before the pandemic. Rates had dropped in 08 after the credit crunch and a lot of central banks had never returned their base rates to their historical average. In my country the central bank had announced a plan in about 2018 to gradually raise the base rate from around 1% to I think it was 4% over the following 5 years.