3 ms·

I keep hearing people debate about why housing prices are so high but it confuses me. Didn't housing prices fall dramatically in the 2008 financial crisis? Didn

I keep hearing people debate about why housing prices are so high but it confuses me. Didn't housing prices fall dramatically in the 2008 financial crisis? Didn't various governments put vast amounts of money into the economy in an effort to ensure house prices returned to their previous levels and continued to rise? It seems as if high housing prices are an explicit policy of most major powers at this time.

nl 6y ago
> Didn't housing prices fall dramatically in the 2008 financial crisis? No, not really. https://www.statista.com/statistics/240991/average-sales-prices-of-new-homes-sold-in-the-us/ https://www.statista.com/statistics/240991/average-sales-pri... > Didn't various governments put vast amounts of money into the economy in an effort to ensure house prices returned to their previous levels and continued to rise? No. They put lots of money into the economy as Keynesian economic expansion policy, to combat unemployment. House prices simply weren’t as dramatically effected as you seem to think. Check the statistics on the previous link if you don’t believe me.
ihyfhgyfhth 6y ago
Yes, exactly. https://betterdwelling.com/canada-says-property-bubble-not-great-for-locals-good-for-foreign-investors/ https://betterdwelling.com/canada-says-property-bubble-not-g...
HWR_14 6y ago
No, housing prices didn't fall dramatically in the wake of the 2008 crisis. I mean, sure, they fell 33%, but they were still higher (compared to income) than at the beginning before the start of the 2000-2008 bubble, at least in the 80 years of records I can trivially look up. That's true in the US and UK. I'd contend that preventing massive asset depreciation, including housing, was an explicit policy of every major economic power in North America, Europe and China. I don't know, but suspect other major economic powers also participated in that, but I'm not as well versed. (I should point out that in the 1950s it was just as large a multiplier of household income, but in that time we went from one wagerearner to two.)

nl 6y ago

> Didn't housing prices fall dramatically in the 2008 financial crisis? No, not really. https://www.statista.com/statistics/240991/average-sales-prices-of-new-homes-sold-in-the-us/ https://www.statista.com/statistics/240991/average-sales-pri... > Didn't various governments put vast amounts of money into the economy in an effort to ensure house prices returned to their previous levels and continued to rise? No. They put lots of money into the economy as Keynesian economic expansion policy, to combat unemployment. House prices simply weren’t as dramatically effected as you seem to think. Check the statistics on the previous link if you don’t believe me.

ihyfhgyfhth 6y ago

Yes, exactly. https://betterdwelling.com/canada-says-property-bubble-not-great-for-locals-good-for-foreign-investors/ https://betterdwelling.com/canada-says-property-bubble-not-g...

HWR_14 6y ago

No, housing prices didn't fall dramatically in the wake of the 2008 crisis. I mean, sure, they fell 33%, but they were still higher (compared to income) than at the beginning before the start of the 2000-2008 bubble, at least in the 80 years of records I can trivially look up. That's true in the US and UK. I'd contend that preventing massive asset depreciation, including housing, was an explicit policy of every major economic power in North America, Europe and China. I don't know, but suspect other major economic powers also participated in that, but I'm not as well versed. (I should point out that in the 1950s it was just as large a multiplier of household income, but in that time we went from one wagerearner to two.)