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I know nothing about economics, so please correct me if I'm saying something dumb. Am I right in believing that a big housing market crash is unlikely unless t
by mFixman 5y ago
I know nothing about economics, so please correct me if I'm saying something dumb.
Am I right in believing that a big housing market crash is unlikely unless there's an accompanying big stock market crash? House prices have been rising since the 2008 crisis, and any significant downturn in housing prices will be responded with people selling other assets to buy new and now-cheaper properties, thus raising house prices again.
Here in London house prices went down majorly during the first months of the 2020 pandemic, but they quickly went back up and kept raising as people tried to get discounted property.
- thoughtstheseus 5y agoWidespread asset devaluation is unlikely because central banks will inject cash to prevent declining asset prices.
- arthurcolle 5y agoTransitory inflation with transitory being the interval described by (T_0 aka now, T_inf aka heat death of universe]