The real estate market has been viewed of late through a lens that is about five years old. “Conventional wisdom” may say that low rates have driven the market, but when one looks at interest rates over the past thirty years, they don’t look so bad. To those who complain about 7% rates, please gain some perspective. There was a time when houses were not bought and sold every few months.
The commoditization of the real estate market looks to be on its last legs. Low rates and the perception/reality of those low rates have driven the market over the past few years. Now that inventory has caught up with the market, true equilibrium may be reached.
Graph courtesy of Jay at buygilberthomes. Data courtesy of FreddieMac. I actually downloaded this data weeks ago, but am not the graphical wizard that Jay is. 🙂