So who will be buying the homes that aren’t “lesser in size, in a lesser location or in lesser condition or all three”?
I say the same type folks that are buying them now, only the principle (price) will be lower to meet the lower borrowing levels (demand). People aren’t getting more house now due to lower interest rates, only more debt.
The sellers will be the ones sucking it up.[/quote]
Bingo!!!
Not sure why some people still can’t grasp the relationship between easy/cheap credit and price. Housing prices are not set by yesterday’s buyers, they are set by tomorrow’s buyers. If future buyers have access to less credit than today’s buyers, then prices will go down.
