3 ms·
> And nothing about the pandemic made the houses themselves more or less valuable Supply and demand. If people are moving out of Manhattan (and they are), then
by ghouse 6y ago
> And nothing about the pandemic made the houses themselves more or less valuable
Supply and demand. If people are moving out of Manhattan (and they are), then demand went down and the house is less valuable. If people have lost their job and can't afford mortgage and sell their home and move into a rental apartment, supply for homes increased and the house is less valuable.
- kevin_thibedeau 6y agoManhattan expats are going to boost demand in the commutable tristate suburbs.
- rabidrat 6y agoThat's not how it works, at least not in 2009. If you don't have enough equity, the bank is not interested in letting you short-sell your house and thus won't approve it (they would rather you default on the loan!) People who have more equity in their homes will decide to sit tight so they don't have to take a loss. Even commercial real-estate will let their properties lie fallow rather than lower the rent. "Supply and demand" is a nice platitude and economic theory but it doesn't reflect reality.
- pixl97 6y agoBecause commercial can keep getting loans to because the property price generally goes up. If lending tightens and prices stagnate you might, and I believe will, see a lot of comm defaults soon.