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Both. In an illiquid market, it takes a long time to find buyers or sellers. You are incentivized to overprice (if selling) or underprice (if buying) and wait a
by javert 5y ago
Both. In an illiquid market, it takes a long time to find buyers or sellers. You are incentivized to overprice (if selling) or underprice (if buying) and wait a long time to see if someone will match you. A liquid housing market means people can buy or sell the house at the "right" price without waiting many months or years.
As a seller, would you rather wait a year to make a bit more money? That wouldn't be good. That would be crappy.
- rswail 5y agoSure, but the more important point is that the market represents housing. Having housing empty is pointless, so market speculation is that is not about the rent from the asset but only its capital growth leads to that exact outcome, empty housing has lower expenses and depreciation in reality, which helps maintain the asset's value better than if someone was living in it.
- javert 5y agoI haven't heard of housing sitting empty. Even if there is a flipper in the chain of possession, houses end up getting acquired by long-term investors who rent them out or people who actually live in them. As far as I'm aware.