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Its not the morality but the expectation of the housing prices bouncing back to normal like the rest of the economy that is keeping them from walking away. But
by prat 17y ago
Its not the morality but the expectation of the housing prices bouncing back to normal like the rest of the economy that is keeping them from walking away.
But the issue with realestate is that its not as agile a market as stocks or commodities. the volatility observed in a month in the stock market is probably going to be observed in a year in real estate market. And I am not not even talking about the phase lag but the different scales of variation between the 2 types of markets.
- ars 17y ago> Its not the morality but the expectation of the housing prices bouncing back to normal like the rest of the economy that is keeping them from walking away. Then they could walk away, and buy a different (cheaper) house, or buy first then walk away.
- prat 17y agoThere is cost of walking away, damage to credit. So if they stay, assuming things will get better and they do, they keep their credit too.
- lurkinggrue 17y agoHousing prices were not normal when many were buying.
- axod 17y agoOver the long term, on averga, house prices always rise. People always need places to live.
- lurkinggrue 17y agoHow can you have prices always going up? Wouldn't that be a bit like perpetual motion?
- axod 17y agoInflation? :/