One question

[Mike M (the other one)]

(09-02-2023, 04:33 PM)Crazyjdawg Wrote: The reason 300k is currently the water mark for your typical "average home" is because a 300k home (with 10 to 20% down) over 30 years with ~3 to 4% interest comes out to about 1000 dollars per month, which is usually how much a typical family making an average household income can afford.

My concern with your plan is if they do this, then demand would rise, because more people have 554 dollars per month that people who have 1000 dollars per month (without supply increasing in kind), then the price of the home would just increase (be bid up) so that now the 60 year mortgage comes out to an average of 1000 dollars per month, which means the house went from 300k to 550k, costing the buyer hundreds of thousands of dollars without improving their monthly payment. 

Good point but there isn't simply isn't a perfect plan. 

OFC demand will go up, So what do you suggest as a counter?