Morgan Stanley sees two potential outcomes for housing prices next year.
One, if mortgage rates slide from their peak this year, the housing market could see demand ramp up, pushing prices up another 5% in 2024.
On the other hand, if mortgage rates remain high and the U.S. enters a recession, that will scare off homebuyers and home prices will recede more.
So effectively, either way, they will remain out of reach.
Could homebuyers finally catch a break? No
It’s always no unless the local economy busts.
I was about to say. I haven’t read the article, but wouldn’t that happen only if the housing market crashes?
The article doesn’t base it on anything other than, sellers want to sell. It’s all assumptions based on other assumptions.
So the scenarios are:
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Interest rates go down and prices go up. Making it more expensive to get a house.
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Interest rates stay the same, number of homes increase, causing prices to go down.
I can’t tell how either scenario is a good deal for current homeowners.
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Yeah, it’s easier to sell my home, but harder to buy a new one.
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Easier to sell my home, for less money, and I get a higher interest rate on a new home.
Lose/Lose.
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