30 years down the track and a 60% fall in house prices and flat stock market
If interest rates rise from 3 to 6 % that doubles peoples repayments . As people buy a house on how much they can spend (borrow) thats 50% less so 50% decline in prices
The only thing driving house prices up is lower rates and from this low its a good chance they go up and for sure house prices fall as interest rates rise
You can have all the demand you want but its all about how much can people pay (borrow) and you can bet the banks are on that one if they know as rates rise prices will fall so will want a bigger deposit and you end up as Japan
