In 2021, someone dropped $5.6M ($100k over asking) on an Oakville (Canada) home the day it went on the market. Today after 4 months on the market they sold for a $1M loss.
byu/Boo_Randy_II inHouseBuyers
“Homeowners in Florida pay the highest average annual premium of all the states ($2,437), and Texas is not far behind ($2,146). These costs are driven by increased climate risk, insurer exits, and regulatory instability. In many cases, insurance premiums now exceed monthly mortgage payments, making homeownership financially unsustainable.” https://www.dailymail.co.uk/real-estate/article-15077575
Zero-percent mortgages look like a lifeline, but they barely touch the problem. Even if interest disappears, homes sit out of reach, priced far above what anyone can afford. The cost of living keeps rising, wages lag, and buying a home feels impossible. Shortages of inventory, speculative buying, and climate-driven risk have ripped housing free from any connection to reality. Every calculation, every budget, every hope gets crushed under numbers that make no sense anymore.
“In some markets, even a 0% mortgage wouldn’t make homes affordable. The gap between median income and median home price has widened so dramatically that interest rates are no longer the primary barrier. Structural price inflation, driven by supply shortages and speculative investment, has decoupled housing from economic fundamentals.” https://www.msn.com/en-us/money/economy/ar-AA1MO2ZI