I think you’re asking the wrong question. The right question is what would have happened to home prices if not but for the changes in interest rates.[/quote]
“…what would have happened to home prices if not but for the changes in interest rates ?”
One cannot answer that question without generating assumptions that would generate even more questions.[/quote]
Since the value of all RE is based upon “local” factors, each submarket in the nation and even the sold prices of the micromarkets within those submarkets behaved differently during interest rate changes.
In markets where there is ALWAYS a “captive audience” of buyers from all over the world (such as in coastal CA cities), fluctuations in mortgage interest-rates have much less correlation to home values and home sales volume than in lesser-desirable national markets. Why is this so? Because many CA coastal buyers are willing (and able) to pay cash for a property affording them a “lifestyle” they can’t get anywhere else in the country.
