Re: When housing becomes unaffordable...
Median house price stuff confuses me. New houses added to supply are generally larger/more expensive to existing base - correct ?
That line in the article confused me too. I think what they're trying to say though, is that while the median home price will drop, that's just the price point at which 50% of the homes sold are more expensive, and 50% are less expensive. With home prices rising, interest rates rising, etc, it's going to put a crimp in sales of more expensive homes, while more cheaper homes might sell.
The values of any specified property will stay the same or rise slightly, but the mix of cheaper to more expensive properties will change, skewing the median. I don't believe for a second though, that values are going to keep rising. While some people may just get frustrated and take their more expensive homes off of the market, others are going to be desperate to unload a house they can't afford, and are going to cut it at a loss.