Comment Re:The real question here (Score 2, Interesting) 185
people realized although such was the value on paper, no one could actually sell at that price and receive anything near the current "market value".
I keep telling people we need our high-interest-rate market back because it'll force home prices down. Home prices go up when interest rates go down, because people are still buying the same houses for $1200/mo; the difference is whether it's a $120k house or a $350k house that you're paying $450k for. Also, with high interest rates, putting an extra $20 on your mortgage cuts off tens of thousands of dollars from the total cost; with low interest rates, you need to take heroic efforts, like tripling your payments, to save any real money.
They tell me that people just won't be able to afford houses, and that the prices won't come back down. Houses will just go unsold, forever.