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Re:Mortgage Rates Could Tank Home Prices by 20%, Fed Study F... by maxfurman on Wednesday November 16, 2022 @10:36AM (#33624811)
I bought in 2016, and, if Zillow is to be believed, its resale value has increased by over 30% in that time. That's crazy, right? The minor improvements I've made in the last few years can't possibly be worth that much. Philly is not a 30% nicer place to live than it was 5 years ago, to put it nicely. If prices go down and I'm "only" up 10% over when I bought that's still pretty good.

Asset prices, particularly homes, have been puffed up by ZIRP and other factors for a long time, and are overdue for a correction.

Re:Mortgage Rates Could Tank Home Prices by 20%, Fed Study F... by orev on Wednesday November 16, 2022 @11:51AM (#33626252)
You’re fundamentally misunderstanding how prices work (as does the vast majority of people, including journalists who report on these things). The price of anything is dependent on one thing alone: how much someone else is willing to pay for it. Any improvements you made might entice someone to pay more, but if they don’t care about the things you changed, they won’t pay for them and therefore the changes didn’t add any value.

If people are willing to pay 30% more from you doing nothing, then the value still went up simply because that’s the definition of value.

Re:Mortgage Rates Could Tank Home Prices by 20%, Fed Study F... by AnimalMuppet on Wednesday November 16, 2022 @03:37PM (#33630163)
In the six years since 2016, what has been the cumulative amount of inflation?
Re:Mortgage Rates Could Tank Home Prices by 20%, Fed Study F... by dzhiurgis on Wednesday November 16, 2022 @06:30PM (#33632541)
24.2%
Re:Mortgage Rates Could Tank Home Prices by 20%, Fed Study F... by AnimalMuppet on Wednesday November 16, 2022 @07:33PM (#33633244)
So a 30% rise in home value is not much, in real terms.