Lack of affordibilty is the main problem with local real estate. An increase in interest rates can only exacerbate the affordibility problem and push prices further down…
It all boils down to the affordibility of the area realative to peoples income. Home prices will not stop declining until they get somewhat in line with the affordibilty to the people in the area. It is much more complex than that however that is the issue boiled down to it’s simplist form.
