But If the fed raises rates, and the housing market crashes (Again), will that not mess up the banks once more, not to mention the economy and local municipalities coffers?
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Mortgage interest rate hikes won’t make the market “crash.” Not when millions of buyers in recent years bought with super low fixed-rate mortgages, mostly 30 years in duration. And 95% of the rest of the buyers paid all cash when they bought.
How are all these properties suddently going to fall into “distress?”
The reality is that they aren’t. Rate hikes won’t affect the amount of buyers, either. They will only affect how much each buyer can borrow. This doesn’t mean buyers won’t buy a residence if they need one. It just won’t be the type of residence that FTB’s and STB’s have become (artificially) “accustomed to” being able to buy in recent years. It will be lesser in size, in a lesser location or in lesser condition or all three.
Buyers will have to suck it up and deal with it.
And if rents keep escalating, people who want to stay will not want to keep paying exorbitant monthly rent if they have the ability to buy.
The SD RE market will go on as it always has and all will be as it should be in a CA coastal county.
Prospective buyers who are now waiting for another “crash” to buy in SD County will find themselves waiting forever, IMO.
