2 ms·

Housing in 2021 was driven by low interest rates. That is over.

• e-clinton 4y ago
  I bought a house because my wife and I couldn’t WFH from a 2 bedroom apartment. The low interest rate was just good timing. While interest rates are crazy high now, the inventory shortage on housing persists, at least in the range we bought. I’m glad I bought, even in a sellers market.
• nly 4y ago
  It's not over until the market reaches equilibrium. Modest 3 bedroom homes up to an hours commute outside central London are still up to 20-25x the average UK wage. Even with 2 average incomes you're looking at 10-12x. The math (based on shift in interest rates) says there should be a 30% correction, but the reality is nobody is predicting that. More like 10-15% over the next 2 years. Meanwhile rents are going in to the stratosphere as people abandon their home-owning aspirations. Higher rates are doing nothing but causing suffering. Inflation is expected to persist and official projections of it suddenly falling away seem contrived.