Low interest rates are currently limping us along. My job is a good economic indicator. I handle septic permits for my county. The last 18 months have been absolute insanity. Back in august when building material prices doubled and tripled in cost, me and everyone at the building department thought for sure it would end the boom and the economy would start to tank. It never did, even as new home prices should have deterred anyone with a brain from carrying on with their project. We finally realized that with super low interest rates, people could absorb the cost of a much higher loan amount. So if someone wanted to build, the high cost of the home with a low interest rate didn’t phase them. It’s only a matter of time, and we I’ll be back to 2008. All the homes being built right now in my area for $500,000 that would have cost $250,000 back in July, will be worth about $250,000 or less when the market crashes. Anyone who loses their job or income won’t be able to sell because their house is half the value they paid for it and the only option is to default on the loan. This goes for existing homes as well, the prices are super inflated right now. Even my shithole house that’s completely gutted to the studs is worth $100,000 right now and it appraised for $15,000 just 5 years ago. It’s all gonna come down fast and hard once the interest rates go up.
Low interest rates are currently limping us along. My job is a good economic indicator. I handle septic permits for my county. The last 18 months have been absolute insanity. Back in august when building material prices doubled and tripled in cost, me and everyone at the building department thought for sure it would end the boom and the economy would start to tank. It never did, even as new home prices should have deterred anyone with a brain from carrying on with their project. We finally realized that with super low interest rates, people could absorb the cost of a much higher loan amount. So if someone wanted to build, the high cost of the home with a low interest rate didn’t phase them. It’s only a matter of time, and we I’ll be back to 2008. All the homes being built right now in my area for $500,000 that would have cost $250,000 back in July, will be worth about $250,000 or less when the market crashes. Anyone who loses their job or income won’t be able to sell because their house is half the value they paid for it and the only option is to default on the loan. This goes for existing homes as well, the prices are super inflated right now. Even my shithole house that’s completely gutted to the studs is worth $100,000 right now and it appraised for $15,000 just 5 years ago. It’s all gonna come down fast and hard once the interest rates go up.