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A comment on Top US corporations raising prices on Americans even as profits surge. Parent comment

Re:Top US corporations raising prices on Americans even as p... by sicp-enjoyer on Wednesday April 27, 2022 @11:10AM (#31180864)
> Down payments are pretty hard to come up with on a $1m property

I agree, it does create some kind of ceiling.

> A lot of the time you're competing with developers willing to pay cash

I think that's a secondary effect. Low interest rates create a market of people willing to buy at high prices that the developer is hoping to resell to. A lot of their working capital is also borrowed.

[ Parent | on HN ]
Re:Top US corporations raising prices on Americans even as p... by camgunz on Wednesday April 27, 2022 @11:13AM (#31180906)
> I think that's a secondary effect. Low interest rates create a market of people willing to buy at high prices that the developer is hoping to resell to. A lot of their working capital is also borrowed.

Oh yep, I totally buy this.

[ Parent | on HN ]