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Higher rates don't do anything because incumbent owners simply pull houses off the market to wait it out. You need to increase carrying costs. Land value tax i
by rcpt 2y ago
Higher rates don't do anything because incumbent owners simply pull houses off the market to wait it out.
You need to increase carrying costs. Land value tax is the best way but it's about as far as you can get from what's implemented anywhere
- tmnvix 2y agoI have a feeling that those hoping to wait it out in the hopes of a return to low rates might be caught out this time around. The past few decades (coinciding with the property price boom) have been all about ever decreasing interest rates. What is happening now looks a lot like a paradigm shift. I wouldn't bet on rates falling substantially anytime soon.
- matwood 2y ago> Higher rates don't do anything because incumbent owners simply pull houses off the market to wait it out. You need a recession.
- abenga 2y agoDo lower house prices in a recession matter if no one has money, and everyone is being laid off from work? I feel like no one, except the very rich, benefits.
- matwood 2y agoUnfortunately recessions and job losses are how you get lower prices. You need forced selling. As long as we're labor constrained with a hot GDP, people with a house and low rate will continue living their best life.