FormerXBC Inc XEBEQ

RE:RE:RE:RE:RE:Stop quibbling back and forth

[AlwaysLong683]

Most who have owned their home for a decade or more should be fine re. equity in their houses. but those who have purchased new homes over the past few years are the ones at risk. They paid top dollar, so if the market dries up due to higher interest rates and/or inflation, or they are forced to sell their home because fast rising cost of living may make their mortgage payments too much to handle, or people in their neighbourhood put their home up for sale and there's a lack of buyers at the price they paid because higher mortgage rates and government rules re. interest rate coverage eliminate many potential buyers, the current market value of their homes will drop, likely by a significant amount below their purchase price. thus, negative home equity.

Bottom line: Rising interest rates combined with high inflation is not a good combo for the housing market.