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The more expensive a property is, the less its price falls in bad times. Rich people are rarely forced to sell. It's a different market basically disconnected f
by tormeh 11y ago
The more expensive a property is, the less its price falls in bad times. Rich people are rarely forced to sell. It's a different market basically disconnected from the rest. I don't know what kind of house you want, but there's a nonlinearity there that might be important.
- the_economist 11y agoDo you have some data to back this up?
- philrapo 11y agoLevered people, whether rich or poor, are the ones who are forced to sell. There are always some over levered folks from both ends of the economic spectrum. As long as you can make your monthly payments, you'll never be forced to sell.
- BashiBazouk 11y agoThat is not what I have seen in the bay area over the last few decades. The high end fluctuates quite a bit but the low end is steady and remains high. Much more competition for starter homes than higher end homes around here...
- bufordsharkley 11y agoAnd to make explicit an obvious fact, because of Prop 13, revaluations on homes are only made when it's resold. A person whose family has owned a house for decades has very little incentive to ever move on.