Adjusted for inflation, a Single Family Home costs 75% more than it did in 1987

Re:Adjusted for inflation, a Single Family Home costs 75% mo... by bko on Monday April 18, 2022 @08:41PM (#31078546)

I would also note that you have to consider mortgage rates. They're on the rise now and I'm not sure if it'll still hold, but last time I looked at it the overall payment is down.

In 1987, mortgage rates were about 15%. To put that into perspective, a $100k 30 year fixed rate mortgage would cost you $1,543/mo at 18.45% and only $442/mo at 3.38%.

I only hope that rates going up will deflate the real estate prices but so far they don't appear to be budging

https://mleverything.substack.com/p/buying-a-home-in-the-us-...

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Re:Adjusted for inflation, a Single Family Home costs 75% mo... by imtringued on Tuesday April 19, 2022 @02:02AM (#31080094)

People compete on monthly payments not the actual house price. Only people who can pay upfront compete on the house price.

Changing interest doesn't change how many people are willing to live in a location. Your monthly payment will just go to the bank instead.

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