Here are the facts…
You’re hearing that higher interest rates rise the harder the real estate market will fall.
Not true.
In 1977 interest rates were 8.7%.
They then went up to 18.4% by 1981 – an increase of 211%.
What did real estate prices do? Did they fall?
Nope.
They headed toward doubling from 46,000k to $71,000.
Wrap your brain around that.
Interest rates went UP, and so did prices.
But it doesn’t end there…
From 1981 to 2021 interest rates dropped from 17.5% to 3%
That’s a drop of almost 90%.
And what did property prices do?
Once again they soared from $70k to $440,000!
That's a 600% increase.
What’s the conclusion?
It’s NOT interest rates that drive real estate.
It's supply and demand that drives real estate.
Which is why we’re in for another historic boom in property prices over the next 12 – 24 months.
And that’s because the United States is experiencing a tremendous housing supply crunch.
You’ve probably seen or heard about the scores of families that literally have no place to live.
Nowhere to rent.
Can’t afford to buy.
Destitute.
Well, that’s only part of the picture.
Apart from not having enough houses for people to live, the pique millennial age is 24 months from intersecting with the average age of the first-time homebuyer creating the greatest demand for housing the country has ever seen.
Further, the United States government is blowing open the doors to immigration. The Census Bureau is reporting a record number of foreign born immigrants in 2022 of 47 million.
The projection for immigration growth over the next 8 years, per the Census Bureau, is 1,200,000 people per year.
Combined with the current lack in housing, this is putting tremendous upward pressure on prices.