Home prices increase at fastest rate in 34 years in December, but rising mortgage rates remain ...

[thatdemguy]

9. I work in construction.

There are so many reasons why prices have gone up. Cost of material and supply issues is a big one, so are interest rates. There is a demand for houses that can not be kept up with. With no new land being made, and more people needing housing its the perfect storm.

You want to buy a house, there is more competition for the ones out there. Low interest rates make it easier to spend to more and you do. Now the next seller goes the house down the street sold for 5% more than the last, so I will try for 5% more than that one.

The ghost in the corner no one really want to talk about is the eviction moratorium, landlords could not evict people who did not pay rent ( for what ever reason ). So now they are sitting on empty rentals, as they would rather have a house sit empty than have a renter not pay. Yes some of them are close enough to break even that an empty house not getting wear and tear is less of a cost than renting and needing to repairs after tenants. So now those who rented also have to buy. Those who are still renting out houses are also trying to make up for a years lost rent in some places. ( not all )

I know a landlord, who rented his first house out, when he bought a second to live in. He went 17 months with no rent paid, he is now in foreclosure on both of his houses. He drained the little savings he had trying to pay the mortgage on the rental, then his wife lost her job, she was a middle manager. When her employer went remote for all the employees they found out they did not need middle managers.