The self correcting housing market of consumerism
People can’t stop wanting more. The rule when buying a home is you should plan to be there for 10 years. I would love to see a statistic for how long the average American stays in the same home.
Today I was wondering how will we get back to normal interest rates for homes. It hit me, consumerism will do it for us. People will want a bigger home, they will want a bigger yard, they will want a different view, some want will encourage home owners to sell the house they purchased with an ultra low interest rate and buy another property at the current interest rate. Ultimately reseting whatever savings they had for buying a home in low interest rate era.
What this means? People are theoretically saving money right now with their low interest rate, but this savings is only temporary, because the need to consume will catch up and people will move out of their low interest rate homes.
Reseting their current ultra-low interest rate to whatever is current at the time (probably 5 years from now)