4 ms·

Similar happened pre 08 housing crash. Give it time.

• lotsofpulp 3y ago
  Job losses have to come first. 2008 had a far greater proportion of loans given to people with tenuous cash flows. Since then, underwriting was tightened up to stop the strippers taking out 4 mortgages situation, so unless we start seeing large scale layoffs causing people to miss payments and lose their homes, you will not see the defaults that cascade into more defaults and so on.
  • JumpCrisscross 3y ago
    > Job losses have to come first Not necessarily. New supply can come online. Or people can decide to wait to buy a home. Job losses are required to lower home prices only if supply stays fixed and demand is inelastic, i.e. consumers have a compulsion to buy homes irrespective of price.
    • lotsofpulp 3y ago
      True, but I do not see that as a realistic possibility based on the already tight markets for the type of labor needed to build homes, especially in the locations that people want homes. 2008 had quick price reductions because people had to sell, and sell quickly, sufficiently increasing supply relative to demand.