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What I think would help at least is if prices stopped increasing. That way, people who buy now at least won't lose money, but the expectation that valuations wi
by nerdponx 4y ago
What I think would help at least is if prices stopped increasing. That way, people who buy now at least won't lose money, but the expectation that valuations will continue to go up will have to taper off.
Also, in the case of high-cost coastal cities, I don't think the issue is trust in government propping up prices, as much as it's trust that demand will continue to outpace supply for the next several years at least.
- NovemberWhiskey 4y agoThat isn't an equilibrium. If the market formed the expectations that property values were going to stop increasing, then property values would drop - because the current price bakes in the assumption that they're going to keep increasing.
- nerdponx 4y agoIn the short term, sure. I'm being a little idealistic, but I don't think it's impossible for housing markets to find a new stable-ish level without lots of people losing their shirts in the process.