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That isn't an equilibrium. If the market formed the expectations that property values were going to stop increasing, then property values would drop - because t
by NovemberWhiskey 4y ago
That 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.