Economy cats, for the past month or two my YouTube algo has been serving up tons of housing bubble incoming videos and I haven't watched any of them but there's a lot of them. So is there anything to it or is it just a psyop?
housing prices are very sticky. nobody is buying right now. it's all tied to mortage rates. nobody wants a new 7% mortgage because they saw all the 2.5% mortgages flying off the shelves during and coming out of covid. people lucky enough to have locked in those sweet rates aren't going to sell because they can't replicate that rate. once mortgage rates drop to sub 6% home sales will heat back up. If by "bubble" they mean housing prices are going to materially go down then I'd say you can safely ignore them. homes (at least the ones you live in) are illiquid and people are very hesitant to take a loss on them, they will just continue to live in them.
So does that just mean that about 3 years ago housing prices just made a huge step change and like, yep, that’s just what houses costs from now on? Like a place that was $750k in 2021 became $1MM pretty much overnight and yeah sorry best you can hope for is maybe if you time the market just right you can get it for $990k?
I get your point abt people not wanting to take a loss but I’m talking about new builds. Like that brand new home was $750 in ‘21 and if they build that exact same brand new home today it’s a mill
On a macro level yes. House prices will not come down meaningfully. On a micro level you'll see some metros come down some because they had a larger run up. FL is seeing prices come down now after running up prices dramatically. That's not what you're going to see in the Midwest though, as an example. And no place will see prices at what they were at in 2021.
Topic: Mainstream Economics Thread (Read 105945 times)
