4 ms·
There are luxury condos right where I live that are sold by a property management company. They are unoccupied, and have been unoccupied for months. The prices
by Jasper_ 4y ago
There are luxury condos right where I live that are sold by a property management company. They are unoccupied, and have been unoccupied for months. The prices have not gone down.
There's no super strong market force to push the price of a house down, while there is a large market force to keep it valued where it is or make it go higher.
- NumberWangMan 4y agoRespectfully, this doesn't prove that the law of supply and demand no longer applies. Any individual seller may choose not to decrease their prices -- but if they do it long enough, they run out of money and are forced to sell. It's also difficult to tease out the effect of general price inflation. If house prices stay stagnant but currency is devauled, prices are decreasing in real terms.
- jkmcf 4y agoSome places have tax breaks for unoccupied property rentals. Instead of lowering prices they leave them high and break even on the losses (or close enough such that they weather the short term until demand at their preferred price is reached)
- 908B64B197 4y agoWhat are the odds these are used to park (questionably acquired) assets by wealthy foreigners?
- Spivak 4y agoMonths is way too short a timeline to say anything. There is no market force that says these houses must sell right now today and so like literally every other asset they’re being held until in the expectation that offers will come in that meet the asking price.