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You can make home prices fall, by creating a shortage of dollars/credit that's worse than the shortage of houses. For hyperbole, houses wouldn't trade for hundr
by Rury 4y ago
You can make home prices fall, by creating a shortage of dollars/credit that's worse than the shortage of houses. For hyperbole, houses wouldn't trade for hundreds of thousands of dollars, if there were only 1k dollars total in existence. A housing shortage wouldn't change that. Fed is currently removing dollars from circulation by reducing their balance sheet, and removing available credit by raising interest rates. Eventually this will weigh on houses prices (along with many things).