Quote:
Originally Posted by Jibartik
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can u eli5?
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ELI5: It looks like home prices peaked last month and are starting to come down.
Home prices were already increasing before Covid, but have really skyrocketed since for two main reasons:
1. Demand: if you can work online and don't have to commute as much then you can move out to a nice house in the suburbs.
2. Federal Reserve Quantitative Easing: Since Covid, the government has spent over a trillion dollars buying mortgages every month in order to keep interest rates low and home prices high.
Covid is still a thing and the government is still spending $40 billion/mo in QE yet prices are coming down. If you are looking to buy a house this is a good sign of light at the end of the tunnel.
One thing that has changed that I can think of is people are starting to see inflation hit their pocketbooks so they might not be all gung-ho bidding over asking price on a home now.