2022 rate increases: What will happen to housing prices?

[Michael Johnson]

The fed just announced 3 rate hikes in 2022 vs the original plan to hike only once at the tail end of 2022. What are your thoughts on how that will affect housing prices in 2022? Very low appreciation?

I have a off market triplex under contract with a long close (5/2/22) due to my recent FHA purchase. Im wondering if rates increase in early 2022, would I have been able to acquire this property for less if I waited a little longer? Could I have squeezed the seller more due to the market cooling off? A lot of hypotheticals but I'm curious to see what people think about these rate hikes the Fed just announced.

[Bill B.]

@Account Closed

The problem with building in small towns, at least in small towns in MN. (I’ll be in Canby, Mn population 1600 for the holidays.) is existing homes (all 4 of them) are selling for between $55-$62/sf. What’s the cost to build new? Double? Triple that? I don’t know how you convince a bank to borrow you money unless you pay cash. And you better bring your own job because as desperate as they are for workers, it’s the $10/hr employee openings they have. 

But I will agree with you on this part of it. I HATE hearing about how we have to make affordable housing in NYC or San Francisco. If I can’t afford to live there, why should people who make 1/4th of what I make be able to live there? Yes, those people should be told you make plenty of money to live in Vegas, or Bakersfield, or most of Florida and Texas. You don’t make enough to live in the most expensive part of America. And just because you were born here or moved here doesn’t mean we pay your way. 

It’s like asking the mc Donald’s employee to pay more taxes so we can forgive the student loans of doctors, lawyers or other high paid individuals.