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It's mostly very low interest rates, longer term mortgages, aggressive selling on the part of banks, and the 'belief' that housing 'cannot go down'. Just like
by jariel 6y ago
It's mostly very low interest rates, longer term mortgages, aggressive selling on the part of banks, and the 'belief' that housing 'cannot go down'.
Just like when interest rates are higher in one country than the next, money flows there.
ROI is higher in housing than other sectors, money flows there.
Foreign buyers and mass immigration are driving factors, but I don't think the primary issue.
Another way of putting it, is that real productivity is way down, and the real economy is in deflation - stuff is getting cheaper, and the opportunities to create value are fewer and far between, the only places left are the stock market and housing etc..
- 908B64B197 6y ago> longer term mortgages These exist because prices have jumped up so much relative to income, so it's a side effect of speculation really. > Another way of putting it, is that real productivity is way down, and the real economy is in deflation - stuff is getting cheaper, and the opportunities to create value are fewer and far between, the only places left are the stock market and housing etc.. That worries me. I'd rather prefer growth to come from new IP than magic assets that can never go down.