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Supply and demand in the housing market is not about the supply of houses but about the supply of CREDIT. As long as the banks are happy to lend large sums at
by ss64 8y ago
Supply and demand in the housing market is not about the supply of houses but about the supply of CREDIT.
As long as the banks are happy to lend large sums at low rates prices will go up, and as soon as the banks become more cautious, either raising rates or restricting how much they will lend, then prices will fall.
I'm sure many will continue to blame immigration but I challenge anyone to come up with any solid data to back up that claim.
We have seen this happen before and that wasn't because millions of people suddenly left the country overnight.
- cinquemb 8y agoExactly. And people still want to pretend that owning a home now is good diversification from the stock market which now is also filled with companies that are utterly dependent on the supply of credit. The pressure on RE market is already keeling over, not just in the US but around the world (thanks to CB's following largely the same policies for so long in this synchronized "recovery").