[quote=SD Realtor]Make no mistake about it, those who will benefit most from the rising rate environment will be the ones who have piles of cash. I didnt run your numbers AN but I do agree with your premise, the only comment I may throw in is that the 120k used to put down for the 600k home is now used for buying the 500k home so the buyer is coming in with a bit more cash to lower the balance a bit, but you may have already accounted for that.
The higher rates will help drag pricing down but pricing will FOLLOW the rates and that rubber band is a few months at least and not instantly. I am thinking over a longer term rates will be in double digits but that will be a ways out I believe.
Your illustration is very useful though. The moral of the story is if you are waiting to pounce when prices dump due to high rates, make sure you have a nice pile.[/quote]
Our pile only goes so far in San Diego Co., but a higher-interest environment is an interesting thought.
And I bet I’m not the only fence-sitter rooting for an expiration of the tax credit. I’m also not foolish enough to assume it would exert a huge downward push on prices, though.
