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> There's no good way to force down housing costs without signaling to sellers that the prices are simply too high The prices aren't too high the dollars are w
by willcipriano 3y ago
> There's no good way to force down housing costs without signaling to sellers that the prices are simply too high
The prices aren't too high the dollars are worth too little beacuse there are too many of them. Stop making more and prices will stabilize.
- epistasis 3y agoIt's actually not because there are too many doses right now, because most people can mot afford to move to a house of a comparable size. There were way too many dollars when mortgage rates were at 2-3%, not at current mortgage rates there are very few dollars for buying homes. This is less a monetary inflation of prices and more structural and supply related. Whoever said that "inflation is always a monetary phenomenon" was a religious nut, IMHO.
- zeroonetwothree 3y agoOne homeowner moving from a house to another similar house has no effect on overall home affordability. So I'm not sure why this is relevant. > Whoever said that "inflation is always a monetary phenomenon" was a religious nut, IMHO. Yes, I'm sure you have many more qualifications than a Nobel Prize winner.
- epistasis 3y agoCurrent homeowners often simply can not move, because the costs of a new mortgage at the same sticker price are too high to afford. This results in an illiquid housing market where people can not move as frequently at they would like.