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I don't disagree, but will point out that if demand isn't being met in an area, pricing changes won't happen until it is. So there is a LOT of demand for houses
by ChuckMcM 5y ago
I don't disagree, but will point out that if demand isn't being met in an area, pricing changes won't happen until it is. So there is a LOT of demand for houses in the bay area (for example) that is unmet and people with salaries to pay the really high prices. As people move out it frees up real estate which should, as a trailing indicator, lead to lower prices. It certainly was true during the dot com bust when people moved out in droves.
- DeathArrow 5y ago> It certainly was true during the dot com bust when people moved out in droves. Buy during crisis when no one wants a particular asset, sell after the crisis when it becomes hot. Rinse and repeat.
- marvin 5y agoWell, if the crisis ever ends. Any crisis can in principle lead to a new Detroit, with 40 years of depressed asset values. Assuming that a crash is just a temporary decline requires a selective memory.
- tadfisher 5y agoIn the meantime, you own a home. You know, a place to reside and keep your stuff.
- smegma2 5y agoIt's interesting that you seem to think this is a bad thing. If you can't buy a house when no one wants one, when do you consider it permissible to buy one?