What are your predictions for the RE market? 6.5% interest rates

[Mary Jay]

Hi guys,

There was a great topic on the real estate predictions. I cant find it.

What do you think will happen with the real estate prices? Now the interest rates are 6.5% I see some prices are dropped may be 15K but still there is a very low inventory...In my area we have 3 houses for sale under 420K which is suuuper low. At a normal market I would expect about 20-30 houses for sale in that area 

So, I because of that low inventory cant imagine prices dropping too much.

What do you think? 

[Nathan Gesner]

As rates increase, buying power goes down. I'm seeing more houses on the market, price reductions across the country, fewer new mortgages, etc. There are a lot of buyers that have been priced out of the market.

I predict we'll continue to see inventory grow and prices go down. I don't know if we'll see huge drops, but 10% or more seems reasonable. With fewer people buying, rentals will be in demand and we'll see rent rates increase.