4 ms·
Right, that's the big question. In a perfect world, people won't sell if they don't have to. And so we'll have to see how everything else plays out. With 2.5%
by vinyl7 4y ago
Right, that's the big question. In a perfect world, people won't sell if they don't have to. And so we'll have to see how everything else plays out.
With 2.5% interest rates, people have maxed out what they can afford for their mortgage and bought at the peak. Any disruption in peoples lives going forward is going to bring a lot of pain.
I'm thinking about all the techies who get most of their TC from RSUs. When the recession starts hitting employment and the stock market, they are going to lose that income they accounted for when the mass home buying spree of the last two years happened.
- deanmoriarty 4y agoI respect your opinion and believe me, I would be "happy" if it were to happen (I do not own a home and have been squeezed by my rent going up 15%+ a year, even though as a techie I'm still in a privileged position). But I do not think it will happen, there are too many people with too much cash who will be able to both weather a storm without selling their house AND scoop up inventory as it comes to the market. A lot of people with 2.5% interest rates are laughing in the face of inflation right now, they effectively got paid to borrow money and they are raising rents on their investment properties like crazy. I know because I work at a FAANG and it's literally the water cooler conversation of the year. Nobody worries about RSUs having gone down 30%, they'll just hold.